EVM - Earned Value Management

It is a major technique used to measure the progress and performance of a project.

Below are different terms related to this.

Planned Value PV It is the authorized budget of an activity
Performance Measurement Baseline
Budget At Completion
PMB
BAC
Total of Planned Value
Earned Value EV It is the value of work performed in terms of Planned Value.
Actual Cost AV It is the realistic cost which actually incurred in finishing the activity.
Schedule Variance SV SV = EV - PV

It is a measure of schedule performance
Cost Variance CV CV = EV - AC

It is a measure of cost performance
Schedule Performance Index SPI SPI = EV / PV

It is a measure of progress achieved compared to progress planned

SPI > 1 = More work completed than planned

SPI < 1 = Less work completed than planned
Cost Performance Index CPI CPI = EV / AC

It is a measure of the value of work completed compared to the actual cost or progress

CPI > 1 = Cost crossed the estimated budget

CPI < 1 = Cost is under control

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