Using Earned Value Management
Earned Value Management is a good method for identifying schedule and cost variances. Table 7.1 summarizes the key elements of Earned Value Management.
| Element | Definition |
|---|---|
| Planned value | Previously known as budgeted cost of work scheduled (BCWS). This involves an estimation of how much a project will cost before it occurs. |
| Earned value | Previously known as budgeted cost of work performed (BCWP). This is the actual physical work that is accomplished and includes an estimate of how much the work is valued at. |
| Actual costs | Previously known as actual cost of work performed (ACWP). This calculation includes the total expenditures for the project. |
| Cost variance (CV) | The comparison between ... |
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