What are the derived metrics from Earned Value?

 Posted by articlesMaint on 9/30/2009 | Category: Project Management Interview questions | Views: 2969

Earned Value gives us three metric views for a project.

Figure: - Earned Value Metrics

Current Progress: - This shows how we are performing in the project.
Forecasting: - Will help us answer how we will do in the project in future.
How will we catch up: - In case the project is moving behind schedule or over budget how do we make up?

Current Progress metrics

Schedule Variance (SV)

Schedule variance is the difference between Earned value and planned value

SV = EV – PV


SV Description
0 You are on right schedule.
Negative You are behind schedule.
Positive you are ahead of schedule.

Cost Variance (CV)

Cost variance is the difference between earned value and the actual cost.

CV = EV – AC


CV Description
0 You are on right on budget.
Negative You are over budget.
Positive you are under budget.

Cost performance Index (CPI)

CPI is the ratio of Earned value to Actual cost.



CPI Description
1 You are right on budget.
Less than 1 You are over budget.
Greater than 1 you are under budget.

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