Name Formula What it Says Why You Use It

Name
Budget at Completion
(BAC)
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)
Formula
No formula; it’s the project budget
PV = Sum of the authorized budget for
the work to be completed by a point in
time.
EV = Sum of the planned value of work
that is completed to a point in time.
No formula; it’s what you have actually
spent on the project
SPI = EV
PV
SV = EV – PV
What it Says
Why You Use It
As of today, what is the value of the
work actually accomplished?
How much you’ve actually spent so far
EV lets you translate how much work the team
has finished into a dollar value.
What you spend doesn’t always match the value
you get!
To figure out whether you’ve delivered the
value your schedule said you would
This puts a dollar value on exactly how far
ahead or behind schedule you are
To figure out whether you’re spending faster or
slower than planned.
Same as CPI.
How much money you’ll spend on the
project
The value of what your schedule says
you should have completed by today
Cost Performance
Index (CPI)
Cumulative Cost
Performance Index
c
(CPI )
Cost Variance (CV)
CPI = EV
AC
c
c
CPI = EV
c
AC
We are progressing at ___ % of the
rate originally planned
How much ahead or behind schedule
you are
We are getting $_____ worth of work
for every $1 spent
The same as CPI, only for the project
to-date
CV = EV – AC
How much over or under budget
Estimate at Completion
(EAC)
EAC = AC + Bottom-up ETC
(fundamentally flawed)
As of now, how much do we expect the
total project to cost?
Schedule Performance
Index (SPI)
Schedule Variance (SV)
To tell the sponsor the total amount of value
they’re getting for the project
To figure out what value your plan says you
should have delivered so far
Your sponsor is always most interested in the
bottom-line!
To understand if we need to seek more funding
or make other changes to get costs back in line.
EAC = BAC (var typical)
c
CPI
EAC = AC + BAC – EV (var atypical)
c
Estimate to Complete
(ETC)
Variance at Completion
(VAC)
To-Complete
Performance Index
(TCPI)
c
EAC = AC + (BAC – EV) / (CPI x SPI )
ETC = EAC – AC
VAC = BAC – EAC
TCPI = (BAC – EV)/(BAC – AC)
How much more will the project cost?
As of now, how much over or under do
we expect the total project cost to be?
What cost performance is required to
meet our budget?
Advanced Project Management, by Andy Kaufman, PMP
Copyright © 2013, Institute for Leadership Excellence & Development Inc.
You need to make sure there is adequate
funding
Your sponsor is always most interested in the
bottom-line!
Provides a sanity check for how viable your BAC
really is. If not viable, the PM develops a
forecasted EAC for approval.
http://www.nanacast.com/Advanced-Project-Management
http://www.PeopleAndProjectsPodcast.com
Name
Budget at Completion
(BAC)
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)
What it Says
How much money you’ll spend on the
project
The value of what your schedule says
you should have completed by today.
As of today, what is the value of the
work actually accomplished?
How much you’ve actually spent so far
Schedule Performance
Index (SPI)
Cumulative Schedule
Performance Index (SPIc)
We are progressing at ___ % of the
rate originally planned
Represents the cumulative SPI of the
project at the point the measurement
is taken
Schedule Variance (SV)
How much ahead or behind schedule
you are
Cost Performance Index We are getting $_____ worth of work
(CPI)
for every $1 spent.
Cumulative Cost
The cumulative CPI of the project at
c
Performance Index (CPI ) the point the measurement is taken
Cost Variance (CV)
How much over or under budget
Estimate at Completion
(EAC)
Estimate to Complete
(ETC)
Variance at Completion
(VAC)
To-Complete
Performance Index
(TCPI)
As of now, how much do we expect
the total project to cost?
How much more will the project cost?
As of now, how much over or under
do we expect the total project cost to
be?
What cost performance is required to
meet our budget?
Advanced Project Management, by Andy Kaufman, PMP
Copyright © 2013, Institute for Leadership Excellence & Development Inc.
Why You Use It
To tell the sponsor the total amount of value
they’re getting for the project
To figure out what value your plan says you should
have delivered so far
EV lets you translate how much work the team has
finished into a dollar value
What you spend doesn’t always match the value
you get!
To figure out whether you’ve delivered the value
your schedule said you would
Where SPI can be at one point in time (e.g. for a
specific month), SPIc is for the project to-date.
This puts a dollar value on exactly how far ahead
or behind schedule you are
To figure out whether you’re spending faster or
slower than planned.
Where CPI can be at one point in time (e.g. for a
specific month), CPIc is for the project to-date.
Your sponsor is always most interested in the
bottom-line!
To understand if we need to seek more funding or
make other changes to get costs back in line.
You need to make sure there is adequate funding
Your sponsor is always most interested in the
bottom-line!
Provides a sanity check for how viable your BAC
really is. If not viable, the PM develops a
forecasted EAC for approval.
http://www.nanacast.com/Advanced-Project-Management
http://www.PeopleAndProjectsPodcast.com