Earned Value Management
A method that integrates scope, schedule, and cost to measure project performance against the plan.
Earned Value Management is an integrated performance technique that combines scope, schedule, and cost into three core values: Planned Value (PV), Earned Value (EV), and Actual Cost (AC). From these you derive Schedule Variance (SV = EV − PV), Cost Variance (CV = EV − AC), Schedule Performance Index (SPI = EV/PV), and Cost Performance Index (CPI = EV/AC); below 1.0 signals trouble, above 1.0 efficiency. On the exam, recognize that Estimate at Completion has multiple forms — EAC = BAC/CPI assumes current efficiency continues, while EAC = AC + ETC rebuilds the remaining estimate — so match the formula to the scenario’s assumptions rather than memorizing one version.
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