How to calculate and interpret CV as it is used in earned value analysis in project management. Download additional slides, videos, and resources at https://www.christiansonjs.com/
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Earned value analysis has a long history, dating back to the 1930s, but it was not until the 1980s and 1990s that it became a common methodology in project management. EVA uses some basic information about our project to assess our current status and forecast future progress and final project costs and schedule. It is based on four main datapoints: the time-phased budget of our project, the current date, the percentage of work that is completed, and actual costs to complete that work. All this magic starts with our final project schedule and setting our project baseline.
The time-phased baseline of the value of the work scheduled. An approved cost estimate of the resources scheduled in a time-phased cumulative baseline (BCWS—budgeted cost of the work scheduled).
The actual cost of the work completed. The sum of the costs incurred in accomplishing work. (ACWP—actual cost of the work performed).
And overall as a project we have 50% of the work complete:
And overall as a project we have 50% of the work complete:
The time-phased baseline of the value of the work scheduled. An approved cost estimate of the resources scheduled in a time-phased cumulative baseline (BCWS—budgeted cost of the work scheduled).
The time-phased baseline of the value of the work scheduled. An approved cost estimate of the resources scheduled in a time-phased cumulative baseline (BCWS—budgeted cost of the work scheduled).