Understanding EVM (Earned Value Management)

EVM is the standard method for measuring whether a project is on schedule and on budget.

The Three Inputs

• PV (Planned Value) — what you planned to have completed by now, in RM
• EV (Earned Value) — what you've actually completed, in RM
• AC (Actual Cost) — what you've actually spent

The Key Metrics

Metric	Formula	What It Means
SPI	EV ÷ PV	Schedule Performance Index. SPI < 1.0 = behind schedule
CPI	EV ÷ AC	Cost Performance Index. CPI < 1.0 = over budget
EAC	BAC ÷ CPI	Estimate at Completion. What the project will actually cost

In PM360

EVM metrics are calculated automatically from:

• Budget baseline (BAC)
• Task completion data (EV)
• Financial tracking data (AC)

View EVM on the project Financial tab and the Predictive Analytics page.