📘 Earned Value Management (EVM) – Solved Examples in USD
🧮 Example 1: Estimate at Completion (EAC) and Variance at Completion (VAC)
Given:
• Budget at Completion (BAC) = 22,000
• Earned Value (EV) = 13,000
• Planned Value (PV) = 14,000
• Actual Cost (AC) = 15,000
Solution:
1. Schedule Performance Index (SPI) = EV / PV = 13,000 / 14,000 = 0.93
→ Project is behind schedule
2. Cost Performance Index (CPI) = EV / AC = 13,000 / 15,000 = 0.87
→ Project is over budget
3. Estimate at Completion (EAC) = AC + [(BAC − EV) / (CPI × SPI)]
= 15,000 + [(22,000 − 13,000) / (0.87 × 0.93)] ≈ 26,123
4. Variance at Completion (VAC) = BAC − EAC = 22,000 − 26,123 = −4,123
The project is expected to exceed the budget by 4,123 and is also behind schedule
Element Value (USD) Formula / Note
BAC (Budget at Completion) 22,000 Total planned budget
EV (Earned Value) 13,000 Work actually completed
PV (Planned Value) 14,000 Work planned to be
completed
AC (Actual Cost) 15,000 Actual cost incurred
SPI (Schedule Performance 0.93 EV / PV = 13,000 / 14,000
Index)
CPI (Cost Performance Index) 0.87 EV / AC = 13,000 / 15,000
EAC (Estimate at Completion) ≈ 26,123 AC + [(BAC − EV) / (CPI ×
SPI)]
VAC (Variance at Completion) −4,123 BAC − EAC = 22,000 − 26,123
Conclusion The project is expected to be
over budget by 4,123 and
behind schedule
🧮 Example 2: Performance Analysis After Month 2
Planned Value by Month:
• Month 1: 13,373
• Month 2: 7,229
• Month 3: 30,120
• Month 4: 9,639
Earned Value:
• Month 1: 12,048
• Month 2: 9,036
Actual Cost:
• Month 1: 15,060
• Month 2: 6,024
Cumulative Totals After Month 2:
• Planned Value (PV) = 13,373 + 7,229 = 20,602
• Earned Value (EV) = 12,048 + 9,036 = 21,084
• Actual Cost (AC) = 15,060 + 6,024 = 21,084
Calculations:
• Schedule Variance (SV) = EV − PV = 21,084 − 20,602 = 482
• Schedule Performance Index (SPI) = EV / PV = 21,084 / 20,602 = 1.02
• Cost Variance (CV) = EV − AC = 21,084 − 21,084 = 0
• Cost Performance Index (CPI) = EV / AC = 21,084 / 21,084 = 1.00
The project is slightly ahead of schedule and exactly on budget.
Element Value (USD) Formula / Note
PV (Cumulative) 20,602 Month 1 + Month 2 = 13,373 + 7,229
EV (Cumulative) 21,084 Month 1 + Month 2 = 12,048 + 9,036
AC (Cumulative) 21,084 Month 1 + Month 2 = 15,060 + 6,024
SV (Schedule Variance) +482 EV − PV = 21,084 − 20,602
SPI (Schedule Performance 1.02 EV / PV = 21,084 / 20,602
Index)
CV (Cost Variance) 0 EV − AC = 21,084 − 21,084
CPI (Cost Performance Index) 1.00 EV / AC = 21,084 / 21,084
Conclusion The project is slightly ahead of
schedule and exactly on budget
🧮 Example 3: Activity-Based SPI and CPI Calculation
Activity A:
• Planned Value (PV): 2,169
• Actual Cost (AC): 2,410
• % Complete: 100%
• Earned Value (EV): 2,169
Activity B:
• Planned Value (PV): 964
• Actual Cost (AC): 1,205
• % Complete: 75%
• Earned Value (EV): 723
Cumulative Totals:
• Planned Value (PV) = 2,169 + 964 = 3,133
• Actual Cost (AC) = 2,410 + 1,205 = 3,614
• Earned Value (EV) = 2,169 + 723 = 2,892
Calculations:
• Schedule Performance Index (SPI) = EV / PV = 2,892 / 3,133 = 0.92
• Cost Performance Index (CPI) = EV / AC = 2,892 / 3,614 = 0.80
The project is both behind schedule and over budget.
Element Activity A Activity B Total Formula / Note
Planned Value 2,169 964 3,133 Total planned
(PV) value for both
tasks
Actual Cost (AC) 2,410 1,205 3,614 Total actual cost
incurred
Earned Value (EV) 2,169 (100%) 723 (75%) 2,892 Total earned
value based on
% done
SPI — — 0.92 EV / PV = 2,892
/ 3,133
CPI — — 0.80 EV / AC = 2,892
/ 3,614
Conclusion The project is
behind schedule
and over budget
