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.
Table 7.1. Elements of Earned Value Management
|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 ...|