Small introduction to Earned Value Management (EVM)

As the complexity of our environment is ever increasing it is becoming very difficult to exactly know the status of all your projects.

This manual coaches the reader from building up a report to the practical usage of Earned Value Management, independent the nature of the project.


  • There’s a need for accurate and consistent status information of project development
  • Progress reporting is about numerous complex (and interrelated) projects
  • Projects have many activities
  • Virtual offices / different continents (time elapse)
  • Diverse technology platforms
  • A lot of dependencies
  • 70% of projects are:
    • Over budget
    • Behind schedule
    • 52% of all projects finish at 189% of their initial budget
    • And some, after huge investments of time and money,
      are simply never completed


To monitor, track and report about the delivery of the products deployed by the projects on a factual and objective basis.


because progress reports need to reflect the essence:

  • do we spent our money well for the work accomplished
  • what is the quality of our products
  • how much work was actually completed during a given period of time


  • step 1 create a product breakdown structure
  • step 2 plan the workload à forecast
  • step 3 register the actuals
  • step 4 calculate the actual cost
  • step 5 register the %completion
  • step 6 calculate the performance metrics (CPI / SPI / etc)
  • step 7 plot the trend

step 1: create the product breakdown structure (PBS)

product breakdown structure 01


product breakdown structure 02

step 2: create the work breakdown structure (WBS)

work breakdown structure 01

now copy the products onto a spreadsheet

eva01 PBS

and forecast the duration for each product (delivered by the project managers who is negotiating with his team and the subject matter experts)

eva02 planned mandays

calculate the cost (planned value) per product (we take as std cost / day € 100)

eva02 planned value

that was the preparation, we call this baseline START

now in follow-up mode:

as soon the project is started, register the actuals per product

eva03 actual mandays

and calculate the Actual Value

eva03 actual cost

register per product the % of completion

  • 0% – Not Started
  • 20% – Started
  • 40% – In Progress
  • 60% – Ready for Final Review Impl
  • 80% – Ready Approval – Tested
  • 100% – Approved – Delivered

eva04 %completed

and finally calculate the performance metrics (earned value analysis formulas)

eva05 project performance metrics

I have limited to only calculate the most simple performance metrics : CPI, SPI and CR, for a full overview see below.

to make it visual plot the metrics

x-axis = week, y-axis = specific metrics

eva06 plot

And that’s the EVM report.


  • we have designed our product breakdown structure
  • We have been forecasting the development of the products
  • we have calculated the budget (planned value)
  • we have tracked along the project lifecycle (monitoring the earnings)
  • we performed trend analysis upon the KPIs

EVM supports you to create an instant and factual overview of the budget spending & schedule burning per product.

EVM project progress report week 2017.26

The managers responsible for each section of the work (Work Package or Control Account) should be required to consider the following key questions and report on them is the measured variance is outside of acceptable limits:

Past Performance Future Performance
Are we on schedule? (SV) What is the “to go” plan?
Are we on cost?        (CV) How is it resourced
What are the significant variances? When will we finish?
Who is responsible? What will it cost in the end?
What is the trend to date? How can we control the trend?
What risks have been reduced or added? How can we adjust for risk?

In EVM we pay attention to the variances on the schedule and on the budget.

  • Schedule variance (SV): deviations from work planned – not a measure of changes in cost
  • Cost variance (CV): deviations from the budget – not a measure of work scheduled vs. work completed

Variance Analysis Questions

  • What is the problem causing the variance?
  • What is the impact on time, cost and performance?
  • What is the impact on other efforts, if any?
  • What corrective action is planned or under way?
  • What are the expected results of the corrective action?

Next steps:

All information gathering to report the progress on a program have been put into 1 spreadsheet including VBA scripts to automatically generate the reports.


Here we have been using the basic KPIs (CPI & SPI).
For a full overview of all EVM metrics (and their added value or applicability) I advise to consult … Google or contact me :   or   Whatsapp: +32 486 693404

Which brings me to the setup of a PMO office.

In a PMO office this is a common progress reporting instrument.