- 2082 Baisakh · 3+3 marks
EVA parameters and their interpretation
Short answer
Earned Value Analysis integrates scope, time, and cost by comparing earned value with planned value and actual cost. Parameters are BAC, PV, EV, AC; variances SV=EV-PV, CV=EV-AC; indices SPI=EV/PV, CPI=EV/AC; forecasts EAC=BAC/CPI, ETC=EAC-AC, VAC=BAC-EAC. Positive SV/CV and indices above 1 mean ahead/under budget; below 1 mean behind/over.
What is Earned Value Analysis? Mention the different parameters of Earned Value Analysis and their interpretation.
Earned Value Analysis
EVA is a project control technique that measures project progress by comparing the budgeted value of the work done (earned value) with the planned value and with the actual cost. It integrates scope, time and cost, and gives variances, indices and forecasts of the final cost and time.
Parameters and interpretation
| Term | Other name | Meaning |
|---|---|---|
| BAC | Budget at completion | Total approved budget of the project |
| PV | BCWS (planned value) | Budgeted cost of the work scheduled up to the date |
| EV | BCWP (earned value) | Budgeted cost of the work actually completed = % complete x BAC |
| AC | ACWP (actual cost) | Actual money spent for the work done up to the date |
| Parameter | Formula | Interpretation |
|---|---|---|
| Schedule variance SV | Positive: ahead; zero: on time; negative: behind schedule | |
| Cost variance CV | Positive: under budget; zero: on budget; negative: over budget | |
| Schedule performance index SPI | > 1 ahead; = 1 on time; < 1 behind. E.g. 0.8 means only 80 % of the planned work is done | |
| Cost performance index CPI | > 1 efficient; = 1 on budget; < 1 over budget. E.g. 0.8 means Rs 0.80 of value is earned for each Rs 1 spent | |
| Estimate at completion EAC | Forecast of the final cost | |
| Estimate to complete ETC | Cost still to be spent | |
| Variance at completion VAC | Expected underrun or overrun at the end | |
| Forecast duration | planned duration / SPI | Expected completion time |
✓ Answer checked by Claude Opus 5.5 (high effort)
Related questions
- Cost control need; earned value; EVA approach · Project Engineering, chapter 4
- Short note: Earned value analysis · Project Engineering, chapter 4
- EVA; 10 days, 50 labour days at Rs 1000 · Project Engineering, chapter 4 · asked 2×
- EVA application; 35 days, Rs 8,00,000 spent · Project Engineering, chapter 4
- EVA; 60 days, 25% work, Rs 12,00,000 · Project Engineering, chapter 4
- EVA; 125 cu.m concrete in 10 days · Project Engineering, chapter 4
- Earned value analysis for performance control · Construction Management, chapter 7 · asked 6×
- Earned value management · ICT Project Management, chapter 9
- Calorific value and air from ultimate analysis · Energy Resources, chapter 1
- Harmonic signal parameters and RMS value · Instrumentation and Measurement, chapter 2