 Definitions

o Earned Value : It indicates how much work was actually completed during a given
period of time. It is the budget associated with the authorized work that has been
completed. It is derived by measuring actual work completed at a point in schedule.
o BAC : Total amount budgeted for the project.
o Planned Value : Is the authorized budget assigned to scheduled work and does not
include management reserve. It indicates how much work should have been completed
at a point in time based on a plan.
o Actual Cost : It is the realized cost incurred for the work performed on an activity
during a specific time period. It indicates the money spent during a given period of time.
o Cost Variance : It is the difference between what we expected to spend and what was
actually spend.
o Schedule Variance: It is the difference between where we planned to be in schedule and
where we are in schedue.
o Cost Performance Index (CPI): It is the rate at which project performance is meeting cost
expectations during a given period of time.
o Schedule Performance Index (SPI): It is the rate at which project performance is meeting
schedule expectations up to a point in time.
o Estimate At Completion (EAC): It is the expected total cost of completing all work.
o Estimate To Complete (ETC): It is the expected cost to finish all the remaining work. It
projects how much more will be spend on project based on past performance.
o Variance at Completion (VAC): It is expressed as difference between budget at
completion and estimate at completion.
o Complete Performance Index (CPI): It describes the performance that must be achieved
in order to meet the financial or schedule goals.

https://www.projectengineer.net/tutorials/earned-value-tutorial/earned-value-
example/

 Formulas

1. Communication Channel = n(n-1)/2

n = Number of Stakeholders

2. Earned Value (EV) = % complete x Budget at Completion (BAC)

BAC = Total amount budgeted for the project.
It is a technique for estimating how a project is doing in terms of its budget and schedule.

3. Cost Variane (CV) = Earned Value (EV) – Actual Cost (AC)

4. Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)

5. Cost Performance Index (CPI) = EV/AC
6. Schedule Performance Index (SPI) = Earned Value/Planned Value
7. Estimate at Completion (EAC) = BAC/CPI
= AC + (BAC – EV)
8. Variance at Completion = BAC – EAC
9. Estimate To Complete = EAC – AC
10. To Complete Performance Index (TCPI) = (BAC -EV)/(EAC-AC)
11. Standard Deviation (SD) = Pessimistic – Optimistic / 6
12. PERT Formula = (P + 4M + O)/6
13. Expected Monetary Value (EMV)= Probability * Impact
14.