How to Track Earned Value

A practical, step-by-step guide to track earned value. Earned Value Management is the concept behind it — here is how to do it in practice.

For the full concept, see Earned Value Management.

Steps

1. Establish a performance measurement baseline: scope (WBS), schedule and a time-phased budget (this gives you PV).
2. Define how you will measure progress objectively (e.g. 0/100, 50/50, or percent-complete rules).
3. At each reporting point, measure EV (budgeted cost of completed work) and record AC.
4. Compute variances (CV = EV − AC, SV = EV − PV) and indices (CPI = EV/AC, SPI = EV/PV).
5. Forecast: EAC = BAC ÷ CPI, ETC = EAC − AC, VAC = BAC − EAC, and act on the trend.