Calculations that are fundamental to earned value management are often presented in Portable Document Format files. These documents typically outline and illustrate the key performance indicators used to assess project progress and performance. Common metrics detailed include planned value, actual cost, earned value, schedule variance, cost variance, schedule performance index, and cost performance index, along with formulas for forecasting project completion costs and timelines. An example of such a calculation would be determining the cost variance (CV) by subtracting actual cost (AC) from earned value (EV): CV = EV – AC.
The utility of such a resource resides in its ability to standardize the application of earned value methodology across projects and organizations. Benefits stem from the improved project control, enhanced decision-making, and proactive identification of potential issues that arise from consistently applying the calculations. Historically, the formalized approach to project performance measurement emerged in the defense industry and has since been adopted across various sectors seeking greater accountability and predictability in project outcomes.
