---
title: "EVA parameters and their interpretation"
subject: "Project Engineering"
chapter: 4
key: "semester_7/project_engineering:eva-concept-parameters-interpretation"
source: https://www.bctengineer.com/q/semester_7/project_engineering/eva-concept-parameters-interpretation
site: BCT Engineering
---

# EVA parameters and their interpretation

Project Engineering · Chapter 4: Project Implementation and Controlling

- Asked in: 2082 Baisakh, 3+3 marks
- Video: [Example 1 Earned Value Management Made Easy](https://www.youtube.com/watch?v=RfZR52s2Mt0) — Pieter Rademeyer
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/project_engineering/eva-concept-parameters-interpretation
- Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-4

## Question

What is Earned Value Analysis? Mention the different parameters of Earned Value Analysis 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.

## Answer

#### 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 | $EV - PV$ | Positive: ahead; zero: on time; negative: behind schedule |
| Cost variance CV | $EV - AC$ | Positive: under budget; zero: on budget; negative: over budget |
| Schedule performance index SPI | $EV/PV$ | > 1 ahead; = 1 on time; < 1 behind. E.g. 0.8 means only 80 % of the planned work is done |
| Cost performance index CPI | $EV/AC$ | > 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 | $BAC/CPI$ | Forecast of the final cost |
| Estimate to complete ETC | $EAC - AC$ | Cost still to be spent |
| Variance at completion VAC | $BAC - EAC$ | Expected underrun or overrun at the end |
| Forecast duration | planned duration / SPI | Expected completion time |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Earned Value Analysis measures progress by comparing:
   A. Earned value with planned value and with actual cost
   B. Planned value with BAC only
   C. Actual cost with the client's payment
   D. Resources used with resources available
   Answer: A. EVA compares EV with PV (schedule) and with AC (cost), integrating scope, time and cost. (Key point: Idea of EVA)

2. Which pair of formulas is correct?
   A. SV = EV - AC, CV = EV - PV
   B. SV = PV - EV, CV = AC - EV
   C. SV = EV - PV, CV = EV - AC
   D. SV = AC - PV, CV = EV + AC
   Answer: C. Schedule variance compares EV with PV; cost variance compares EV with AC. (Key point: Variance formulas)

3. A CPI of 0.8 means:
   A. Only 80% of the planned work is done
   B. Rs 0.80 of value is earned for each Rs 1 spent
   C. The project is 80% complete
   D. The project is ahead of schedule
   Answer: B. CPI = EV/AC; 0.8 means Rs 0.80 of work value per Rs 1 spent. The 80% planned work reading belongs to SPI. (Key point: Meaning of CPI)

4. ETC and VAC are given by:
   A. ETC = BAC - EAC, VAC = EAC - AC
   B. ETC = EAC - AC, VAC = BAC - EAC
   C. ETC = EV - AC, VAC = EV - PV
   D. ETC = BAC/CPI, VAC = PV/SPI
   Answer: B. ETC is the cost still to be spent (EAC - AC); VAC is the expected under/overrun (BAC - EAC). (Key point: Forecast parameters)

## Related in Project Engineering

- [Cost control need; earned value; EVA approach](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Acost-control-necessary-eva-approach) — Project Engineering, chapter 4
- [Short note: Earned value analysis](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aearned-value-analysis-note) — Project Engineering, chapter 4
- [EVA; 10 days, 50 labour days at Rs 1000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-labour-days-1000) — Project Engineering, chapter 4, asked 2×
- [EVA application; 35 days, Rs 8,00,000 spent](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-applicable-monitoring-numerical-b82) — Project Engineering, chapter 4
- [EVA; 60 days, 25% work, Rs 12,00,000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-60-days-25-percent) — Project Engineering, chapter 4
- [EVA; 125 cu.m concrete in 10 days](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-concrete-125-cum-s65) — Project Engineering, chapter 4

## Related in other subjects

- [Earned value analysis for performance control](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aeva-performance-control) — Construction Management, chapter 7, asked 6×
- [Earned value management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aevm) — ICT Project Management, chapter 9
- [Calorific value and air from ultimate analysis](https://www.bctengineer.com/question.md?key=semester_6%2Fenergy_resources%3Adulong-calorific-value-fuel-oil) — Energy Resources, chapter 1
- [Harmonic signal parameters and RMS value](https://www.bctengineer.com/question.md?key=semester_4%2Finstrumentation_and_measurement%3Aharmonic-signal-parameters-rms) — Instrumentation and Measurement, chapter 2