Measuring the - health and performance - of your Project by using the Earned Value Analysis (Project


Measuring the - health and performance - of your Project by using the Earned Value Analysis (Project Management)

Measuring the "health and performance" of your Project by using the Earned Value Analysis (Project Management)


By Dr. Catherine


What is the overall health of the project?


PV=Planned % Completed * Project Budget


EV=Actual % Completed * Project Budget


Earned Value 50%*$10,000 = $5,000


Actual Cost $9,000


Note: Variances should be zero or greater. Positive variances indicate a cost savings or schedule efficiency. Negative variances indicate deficiencies.


Schedule Variance $5,000-$7,500= ($2,500) negative


Note: The index should be as close to 1 or greater. If the number is equal to 1 the project is on schedule. If they are greater than 1 then the project is ahead of schedule.


Schedule Performance Index $5,000/$7,500 = .66 less than 1 – needs examined


ETC=1/SPI*Time (weeks/months at that point in time)


If the project continues at this rate the project will cost the company $18,181 instead of the budgeted $10,000.


4 weeks originally scheduled.


PhD with 20 years teaching, author and songwriter


New York Project Management Tutors


Answers by Dr. Catherine





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