Anticlue

Earned Value Components

Earned Value Management (EVN) is a management technique that relates resource planning to schedules and costs in time-phased increments. It allows for accurate assessments of status to date and is utilized to calculate estimates to completion of project.

Earned value refers to a cost-based performance measurement that compares the amount of work that was planned with what was actually performed to determine if cost and schedule are proceeding as planned. Earned value analysis provides a more accurate view than looking at cost or schedule variance separately. This information alerts the corrective action that must be taken to complete the project successfully.

The elements of earned value:

• Budgeted Cost of Work Scheduled (BCWS) The estimate of costs needed to complete the scheduled project work.


• Budgeted Cost of Work Performed (BCWP) The estimated of costs for work actually completed. Also know as Earned Value.


• Actual Cost of Work Performed (ACWP) The cost of completing the project work

To calculate earned value:

1. Calculate the Budgeted Cost of Work Scheduled (BCWS) for a given period. These amounts were determined when you develop the project budget and should be available from the baseline in MS Project.


2. Estimate the percent complete of the work scheduled for the given time period.


3. Calculate the Budged Cost of Work Performed (BCWP), or earned value, for the same time period by taking the percent complete of work times the BCWS.


4. Calculate Actual Cost of Work Performed (ACWP) for the same period by determining the actual amount of money that has been spent on the work for this time period

In project to see this by a cost per task. Select the Gantt Tracking, then View -> Table -> cost