Earned value is evaluating project performance via the relationships between cost and schedule. It uses three variables to evaluate performance:
- budgeted cost for work scheduled (BCWS)
- budgeted cost for work performed (BCWP)
- actual cost for work performed (ACWP).
These three variables are used to calculate cost variance (CV) and schedule variance (SV).
The cost variance is calculated using this formula:
CV = BCWP – ACWP
The schedule ...