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Earned Value Analysis

A technique that, at a specific reporting date, compares how the project is actually performing against what was planned to evaluate cost and schedule status.

Key Points

  • Compares Planned Value (PV), Earned Value (EV), and Actual Cost (AC) to gauge progress.
  • Calculates key metrics: CV = EV - AC, SV = EV - PV, CPI = EV/AC, SPI = EV/PV.
  • Enables forecasting, such as Estimate at Completion (EAC) and Estimate to Complete (ETC).
  • Depends on an approved baseline and clear measurement rules; usable in predictive or agile settings.

Example

By the end of Sprint 4, the plan called for PV = $100,000. The team has completed work worth EV = $80,000 and spent AC = $120,000. Results: CV = -$40,000 (over budget), CPI = 0.67; SV = -$20,000 (behind schedule), SPI = 0.80. The project manager reviews causes and plans corrective actions.

PMP Example Question

Which technique compares actual cost and progress to the plan at a specific reporting date using metrics like EV, PV, and AC?

  1. Trend analysis
  2. Earned Value Analysis
  3. Parametric estimating
  4. Critical path method

Correct Answer: B — Earned Value Analysis

Explanation: Earned Value Analysis compares actual performance with the plan at a point in time using EV, PV, and AC to assess cost and schedule performance.

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