PROGRESS MEASUREMENT AND EARNED VALUE AACE INTERNATIONAL
Schedule variance (SV) = (earned workhours or $) - (budgeted workhours or $) = BCWP BCWS (equation 5)
Schedule performance index (SPI) = (earned workhours or $ to date)/(budgeted workhours or $ to date) (equation 6)
= BCWP/BCWS
Cost variance (CV) = (earned workhours or $) - (actual workhours or $) (equation 7)
= BCWP - ACWP
Cost performance index (CPI) = (earned workhours or $ to date)/(actual workhours or $ to date) (equation 8)
= BCWP/ACWP
relationships between BCWS, BCWP, and ACWP.
Schedule performance is a comparison of what was planned
to what was done. In other words, workhours were budget-
ed and earned. If the budgeted workhours are less than the PRODUCTIVITY
earned workhours, it means more was done than planned,
and the project is ahead of schedule. The reverse would Project managers are always interested in knowing how well
place the project behind schedule. actual productivity (workhours/unit) compares with the fig-
ures used in planning and budgeting the work. While a com-
Cost performance is measured by comparing what was done parison of earned to actual workhours may appear to provide
to the cost incurred. To do this, earned workhours are com- an evaluation of productivity, it does so only if actual quantities
pared to actual workhours. If the cost incurred were greater of work exactly equal those budgeted. Since this is rarely the
than what was done, the project has overrun its budget. case, another mechanism is needed to evaluate productivity.
The above relationships are expressed by the formulas listed Credit Workhours—Credit workhours (CWH), like earned
as equation 5, equation 6, equation 7, and equation 8. Workhours (EWH), are a derived quantity that provides a vehi-
cle for handling work quantity variations between budgeted
A positive variance and an index of 1.0 or greater denotes and actual without distorting crew productivity figures. CWH
favorable performance. See Figure 14.1 for a plot showing the equals the budgeted productivity workhour unit rate
Budgeted—BCWS
}
$ or Work-hours
SV
} CV
P
CW
-B
ed
rn
SV = Schedule Variance
Ea
P
ACW CV = Cost Variance
l - ΔT = Time Variance
ctua ΔΤ
A
Time, Days
Figure 14.1—Relationships Between BCWS, BCWP, and ACWP
14.4