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what is basic requirement for calculate earned value in cost controlling ?
The Earned Value Analysis (EVA) is a valuable technique to determine real gains and losses.
The main EVA variables (indicators) are:
· BCWS (Budgeted Cost of Work Scheduled) - PV (Planned Value)
· BCWP (Budgeted Cost of Work Performed) - EV (Earned Value)
· ACWP (Actual Cost of Work Performed) - AC (Actual Cost)
· SV (Schedule Variance) : VP = EV – PV; CV (Cost Variance): VC = EV - AC
· SPI (Schedule Performed Index): SPI = EV / PV; SPI = 1 (project on time)
· SPI <1 (performing less than planned); SPI > 1 (performing more than planned)
· CPI (Cost Performed Index): CPI = EV / AC; CPI = 1 (project on budget)
· CPI < 1 (spending more than planned); CPI > 1 (spending less than planned)
