Earned Value Management (EVM)

Earned value management (EVM) is a project performance measurement technique that integrates scope, schedule, and cost into a single analytical framework. By comparing what was planned, what was actually accomplished, and what was spent, EVM produces objective measurements of both schedule performance and cost performance. It answers the two most important progress questions: are we on time, and are we within budget — with numbers rather than subjective assessments.

The Three Core Values

Planned Value (PV) — also called Budgeted Cost of Work Scheduled (BCWS). The authorized budget assigned to the work scheduled to be completed by a specific date. PV comes from the project baseline — it is what you planned to spend on the work planned to be done by today.

Earned Value (EV) — also called Budgeted Cost of Work Performed (BCWP). The authorized budget for the work actually completed to date, regardless of what was spent. EV measures accomplishment in cost terms — it is the budget credit for finishing work.

Actual Cost (AC) — also called Actual Cost of Work Performed (ACWP). The real expenditure incurred for work performed to date. AC comes from accounting or timesheet data — what was actually spent.

Key EVM Metrics

Schedule Variance (SV) = EV − PV. Positive means ahead of schedule (more work was accomplished than planned). Negative means behind schedule.

Cost Variance (CV) = EV − AC. Positive means under budget (accomplished more than was spent). Negative means over budget.

Schedule Performance Index (SPI) = EV ÷ PV. Above 1.0 means ahead of schedule. Below 1.0 means behind. An SPI of 0.8 means you have accomplished 80% of what was planned.

Cost Performance Index (CPI) = EV ÷ AC. Above 1.0 means under budget. Below 1.0 means over budget. A CPI of 0.9 means you are spending $1.00 to earn $0.90 of value.

EVM Requires a Baseline

EVM cannot function without a baseline. Planned Value is derived from the time-phased budget in the baseline — there is no reference point for variance calculation without it. Setting the baseline before work begins is the prerequisite for any EVM reporting. If the baseline is re-set mid-project without clear authorization, the variance data loses meaning.

EVM in Maverick

Maverick's timesheet and task cost tracking provide the actual cost data. The project schedule and baseline provide the planned value. Budget vs. actual cost is visible at the task level, and the Gantt chart's baseline ghost bars give a visual representation of schedule variance — which tasks are running ahead or behind their baseline dates.

Related Terms

Project Baseline  ·  Project Schedule  ·  Resource Leveling  ·  Critical Path