HKSM
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?
- Trend analysis
- Earned Value Analysis
- Parametric estimating
- 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.
