The next two values are created when we track the project. Both of these are periodic values. That is, they relate to a specific date during the life of the project (as does the PV). The key component of the entire EVA process is the BCWP (Budgeted Cost of Work Performed). Does this term confuse you? Then we will call it the "Earned Value" (EV), which is what it is.
Computation of EV couldn't be more elementary. It is the percent complete (%C) of a task times the budget (BAC). If on March 1, our $5,000 task is declared to be 40% complete, then the EV is $2,000. How simple can it get? EV = %C x BAC. 40% x $5,000 = $2,000. Stating this once more, the earned value is the percent complete times the budget.
If you're using resource hours instead of costs, the process is the same. If the BAC is 200 hours and the percent complete is 40%, then the EV is 80 hours.
The second tracking item is actual cost. In EVA-land, it is called ACWP (Actual Cost of Work Performed). We'll be calling it AC. If as of March 1 our subject task has accumulated $2,400 in costs, then the AC is $2,400. Still simple, right?
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.