Project Controls and Estimation Curriculum
EVM
Module from the Project Controls and Estimation Curriculum curriculum.
Module 7 - Earned Value Management · Learning Objectives · 1. Define Planned Value (PV), Earned Value (EV), Actual Cost (AC) · 2. Compute CPI = EV/AC and SPI = EV/PV · 3. Forecast EAC (estimate at completion) = BAC / CPI · 4. Analyze variance and develop corrective action · 5. Report weekly to stakeholders (trend graph) · EVM Metrics and Interpretation
| Metric | Formula | Meaning | Good | Bad | Action |
|---|---|---|---|---|---|
| CV (Cost Variance) | EV - AC | Ahead (+) / over (-) | Positive | Negative | Cost control |
| SV (Schedule Variance) | EV - PV | Ahead / behind | Positive | Negative | Schedule recovery |
| CPI (Cost Performance) | EV / AC | Cost efficiency | > 1.0 | < 0.95 concern | Root cause |
| SPI (Schedule Performance) | EV / PV | Schedule efficiency | > 1.0 | < 0.95 concern | Level resources |
| EAC (Estimate at Completion) | BAC / CPI or BAC + (BAC-EV)/(CPI * SPI) | Final forecast | Close to BAC | > BAC | Replan |
| ETC (Estimate to Complete) | EAC - AC | Cost remaining | Manageable | High | Check scope |
| VAC (Variance at Completion) | BAC - EAC | Final delta | Positive | Negative | Management reserve |
| TCPI (To-Complete CPI) | (BAC - EV) / (BAC - AC) | Required future CPI | < 1.05 achievable | > 1.10 at risk | Remedy |
Source: Project_Controls_Estimation_Curriculum_v1.xlsx · Sheet: EVM
© 2026 Inflection Point Engineering, LLC. All rights reserved. The content of this page — including calculation methods, reference data, written analysis, interactive tools, and source code — is the intellectual property of Inflection Point Engineering, LLC and is protected under applicable copyright, trademark, and trade secret laws. Unauthorized reproduction, redistribution, modification, or derivative use in whole or in part is prohibited without prior written consent.
Disclaimer. This material is provided for informational and educational purposes only and does not constitute professional engineering advice. Calculations, reference data, and methodologies are based on published standards and accepted engineering practice but are not a substitute for engineering judgment, site-specific analysis, or review by a licensed Professional Engineer. Inflection Point Engineering, LLC makes no warranties, express or implied, regarding the accuracy, completeness, or fitness for a particular purpose of any content presented here, and shall not be liable for any direct, indirect, incidental, or consequential damages arising from its use. Users assume all risk associated with applying this content to real-world design, operations, or decisions.
© 2026 Inflection Point Engineering, LLC. All rights reserved.