How do you calculate earned value from CPI?

The cost performance index (CPI) is a measure of the conformance of the actual work completed (measured by its earned value) to the actual cost incurred: CPI = EV / AC. The schedule performance index (SPI) is a measure of the conformance of actual progress (earned value) to the planned progress: SPI = EV / PV.

What is CPI in earned value analysis?

The Cost Performance Index, usually abbreviated as CPI, is one of the fundamental outputs of the Earned Value Management System. It tells the project manager how far ahead or behind the project is at the point of analysis (usually right now).

What are the 3 earned value methods?

Unlike traditional management, in the Earned Value Method there are three data sources:

  • Planned value – PV;
  • Actual value – AV;
  • the earned value of the concrete work already completed.

What is earned value methodology?

Earned Value Management (EVM) is a project performance management methodology that integrates cost, schedule, technical scope, and risk to assess progress against a baseline, use that information to identify problems, and forecast cost (and, to a certain extent, schedule) at completion.

What is SPI and CPI result?

What are SPI and CPI results? The full form of SPI is the Schedule Performance Index whereas the full form of CPI is Cost Performing Index. SPI measures the schedule efficiency of a product and the cost-efficiency of a product is measured by CPI.

What does a CPI of greater than 1.0 mean?

performing well against the budget
If the ratio has a value higher than 1 then it indicates the project is performing well against the budget. A CPI of 1 means that the project is performing on budget. A CPI of less than 1 means that the project is over budget.

What are the top three 3 EVM performance measures?

EVM is built on three metrics: Planned value, earned value, and actual cost.

Why is EVM important?

EVM provides a clear picture of where your project stands versus where it should have been as planned. It also shows the actual work completed against the projected schedule. Thus, EVM provides actionable insights that help project managers determine if the initial plan was realistic and act proactively.

What is the purpose of earned value?

Earned value (EV) is a way to measure and monitor the level of work completed on a project against the plan. Simply put, it’s a quick way to tell if you’re behind schedule or over budget on your project. You can calculate the EV of a project by multiplying the percentage complete by the total project budget.