Relationship between EVM Performance Measure and Project Management Questions

EVM Performance Measure and Project Management Questions

EVM uses data generated in the form of PV,EV,AC to analyse the current status of the project and forecast its future performance. EVM tracks project performance for the current period and also calculates the cumulative performance till to date. The three data points along with the fourth data point called Budget At Completion (BAC) helps project manager present a complete picture of the project. Performance measure indicators like variances, indices and forecasts can answer key project management questions indicated in my earlier post Earned Value Management Versus Traditional Management.

Variances, Indices and Forecasts are of following types

Variances:

·         Schedule Variance (SV)

·         Cost Variance (CV)

·         Variance at Completion (VAC)

Indices:

·         Schedule Performance Index (SPI)

·         Cost Performance Index (SPI)

·         To Complete performance Index (TCPI)

Forecasts:

·         Time Estimate at Completion (EACt)

·         Estimate at Completion (EAC)

·         Estimate to Complete(ETC)

Relationship between EVM Performance Measure and Project Management Questions

Schedule Analysis
Schedule Variance (SV)	Are we ahead or behind schedule?
Schedule Performance Index (SPI)	How efficiently are we using time?

Schedule Forecasting
Time Estimate At Completion (EACt)	When are we likely to finish work?

Cost  Analysis
Cost Variance (CV)	Are we under or over budget?
Cost Performance Index (CPI)	How efficiently are we using our resources?

Cost  Forecasting
To Complete Performance Index (TCPI)	How efficiently must we use our remaining resource
Estimate At Completion (EAC)	What is the project likely to cost?
Variance At Completion (VAC)	Will we be under or over budget?
Estimate to Complete (ETC)	What will the remaining work cost?

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