A short story about Earned Value Management

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Mark Stanton

Business

A short story about
Earned Value Management
by Mark

Duration: 5 days
Rate: $2,000 per day
Budget: $10,000

Complete: 10%
Earned value: $1,000
Actual cost: $2,000

Performance = Earned Value / Cost
$1,000 / $2,000 = 0.5
Forecast = Budget / Performance
$10,000 / 0.5 = $20,000

Complete: 50%
Earned value: $5,000
Actual cost: $6,000

Performance = Earned Value / Cost
$5,000 / $6,000 = 0.833
Forecast = Budget / Performance
$10,000 / 0.833 = $12,000

Track progress
Predict total cost
Avoid nasty surprises

EVM can be done any time
for a single task
or an entire project

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