Earned Value Calculation using Project Costs

This metric explains the calculation of the earned value based on the project costs.

• Planned Value

  The quantum of work planned in the current/ cumulative period. This is the bottom up budget specified in Infor LN. All the status are considered.

• Earned Value

  The quantum of work completed in the current/ cumulative period.

• Actuals

  The actual hours incurred for the task in the current/ cumulative period.

• Cost Variance

  The difference between the estimated cost and the actual cost incurred for the task.

  (Hours variance = Earned value - Actual costs)

• Schedule Variance

  The time period by which a project is ahead of or behind the schedule.

  (Schedule variance = Earned value - Planned value)

• Cost Performance Index

  A measure of cost efficiency of a project.

  (Cost performance index = Earned value / Actual costs)

• Schedule Performance Index

  A measure of schedule efficiency of a project.

  (Schedule performance index = Earned value / Planned value)

The Earned Value Method is used to calculate the Planned Value and the Earned Value. The various Earned Value Methods used for the calculation:

• Percent Complete (cost)
• Start and End Percentage (cost)
• Milestone (cost)
• Level of Effort (cost)
• Apportioned (cost)