1. What is Earned Value Management?

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost to measure project performance and progress. It provides objective data to forecast project outcomes and identify potential issues early.

2. How Does the EV Calculation Work?

The calculator uses the basic Earned Value formula:

Where:

• \( EV \) — Earned Value (currency)
• \( \% \) — Percentage of work completed (decimal)
• \( BAC \) — Budget At Completion (total project budget)

Explanation: Earned Value represents the value of work actually performed to date, measured in monetary terms based on the original budget.

3. Importance of Earned Value Analysis

Details: EVM provides early warning signs of project issues, helps in making informed decisions, and enables better project control and forecasting. It's widely used in construction, defense, and IT projects.

4. Using the Calculator

Tips: Enter percentage complete as a number between 0-100, and the total project budget (BAC). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and actual cost?
A: EV measures the value of work performed, while actual cost measures what was actually spent to perform that work.

Q2: How is percentage completion determined?
A: Percentage completion can be measured through various methods including milestone completion, physical measurement, or weighted averages.

Q3: What are the key EVM metrics?
A: Key metrics include Cost Variance (CV = EV - AC), Schedule Variance (SV = EV - PV), and performance indices (CPI, SPI).

Q4: When should EVM be used?
A: EVM is most valuable for complex projects with defined scope, schedule, and budget, typically lasting several months or more.

Q5: Are there limitations to EVM?
A: EVM requires accurate baseline planning and regular data collection. It may be less effective for agile projects or those with frequently changing requirements.