Earned Value Analysis (EVA), Planned Value (PV), Earned Value (EV), Cost Variance, Schedule Variance

Earned Value Analysis (EVA) is a project management technique that provides an objective measure of project performance. It is based on the comparison of planned value (PV), earned value (EV), cost variance (CV), and schedule variance (SV).

Planned Value (PV): PV is the estimated cost of the work that is scheduled to be completed at any given point in the project. It is also known as the budgeted cost of work scheduled (BCWS).

Earned Value (EV): EV is the estimated value of the work that has been completed at any given point in the project. It is also known as the budgeted cost of work performed (BCWP).

Cost Variance (CV): CV is the difference between the earned value (EV) and the actual cost (AC) of the work completed at any given point in the project. It is expressed as CV = EV – AC. A negative CV indicates that the project is over budget.

Schedule Variance (SV): SV is the difference between the earned value (EV) and the planned value (PV) at any given point in the project. It is expressed as SV = EV – PV. A negative SV indicates that the project is behind schedule.

Using EVA, project managers can track project performance and identify any cost or schedule variances that need to be addressed. The following are some of the benefits of using EVA:

Provides a comprehensive view of project performance.

Helps identify problems early in the project.

Allows for proactive management of cost and schedule variances.

Provides a basis for making informed decisions.

Allows for objective measurement of project progress.

Overall, EVA is a powerful tool that can help project managers manage project cost and schedule performance and make informed decisions to keep the project on track.