The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right

Analysis

Actual costs are assessed throughout the project through status collection. For a given date, EV and PV are most commonly calculated using the “50/50” rule—accumulating half the planned cost on the start date and the other half at the finish. EVM metrics may also use interpolated estimates for performance reporting.

Budget performance is assessed by combining earned value and actual cost. These metrics are both based on the actual schedule, so any difference must result from resource consumption. The cost performance (CP) is EV minus AC, a quantitative measure of how much the project is currently over (or under) budget. The ratio of EV and AC is the cost performance index (CPI), revealing the state of the project budget as a percentage. ...