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How to Work with Earned Value Management

Introduction

This guide shows you how to use the Earned Value Management (EVM) module in Easy8 to monitor project performance. You will learn how to configure earned value charts, understand project baselines, and interpret performance indicators like PV, EV, AC, and related metrics.

Target Audience

  • User

Prerequisites

  • Earned Value module must be enabled in the project settings
  • Project tasks must have estimated and spent time data

How to Configure and Use Earned Value Management

Step 1: Enable and Configure Earned Values

  • Go to Project >> Settings >> Earned Values
  • You will see a list of existing earned value charts
  • You can:
    • Create a new chart
    • Edit or delete an existing chart
    • Set one as default for automatic display

Step 2: Select or Create a Baseline

  • Scroll down to the "Create baseline" section
  • Use an existing baseline or create a new one to represent your project target
  • A baseline defines the Planned Value (PV) curve on the earned value chart
  • Link the baseline to your chart during creation or editing

Step 3: View the Earned Value Chart

  • Navigate to the Earned Values tab in the project menu
  • The chart displays project progress in terms of:
    • Planned Value (PV)
    • Earned Value (EV)
    • Actual Cost (AC)
  • The chart range is determined by the project start and due date plus 20%
  • Markers highlight the current day and the due date

Understanding Key EVM Metrics

Planned Value (PV)

The approved budget for scheduled work by a specific date. In Easy8, PV is calculated as the total estimated time of tasks based on the selected baseline.

Earned Value (EV)

The budgeted cost of work performed to date. In Easy8, EV is calculated as the total percentage done ratio of all tasks.

Actual Cost (AC)

The real cost of work performed. In Easy8, AC is calculated as the total time spent on tasks.

Performance Indicators

Schedule Variance (SV)

SV = EV – PV

  • Negative SV: Project is behind schedule
  • Zero SV: Project is on schedule
  • Positive SV: Project is ahead of schedule
  • Example: SV = $3000 – $4000 = –$1000

Schedule Performance (SP)

SP = EV / PV

  • < 1: Behind schedule
  • = 1: On schedule
  • > 1: Ahead of schedule
  • Example: SP = $3000 / $4000 = 0.75

Cost Variance (CV)

CV = EV – AC

  • Negative CV: Over budget
  • Zero CV: On budget
  • Positive CV: Under budget
  • Example: CV = $3000 – $4000 = –$1000

Cost Performance (CP)

CP = EV / AC

  • < 1: Over budget
  • = 1: On budget
  • > 1: Under budget
  • Example: CP = $3000 / $4000 = 0.75

Conclusion

With Easy8's Earned Value Management, you can track your project's schedule and cost performance using clear visual charts and industry-standard metrics. Set up baselines and earned value charts to monitor real progress against your plan effectively.

Related Topics and Further Reading

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