Planned Value (PV) Planned value (PV) is a concpt used in project management to describe the estimated cost of the work that should have been done at a certain point in time, based on the project schedule and budget. It shows the value of the work that was supposed to be done up to a certain date…
Schedule Performance Index (SPI) The Schedule Performance Index (SPI) is a project management metric that measures the efficiency of a project schedule. SPI is used to determine how well a project is progressing according to the planned schedule. The SPI is calculated by dividing the earned value (EV) by the planned value (PV). The formula for calculating…
Schedule Variance (SV) There are several pieces of information that are not clear or are not necessary to be available with clarity while we go through the project. We assume and progress. In most cases, it is done at the beginning of the project where we outline the basic assumptions and as we dive into the project…
Actual Cost (AC) Actual Cost (AC) is a project management number that shows how much the work on a project has actually cost up to a certain point in time. The AC is a key part of the earned value management (EVM) method, which is a way to measure the success of a project based on how…
Budget at Completion (BAC) Budget at Completion (BAC) is a project management measure that shows how much the project was supposed to cost when it was finished. The earned value management (EVM) method is a way to measure how a project is going in terms of cost and plan success. BAC is a key part of the…
Cost Performance Index (CPI) Cost Performance Index (CPI) is a project management metric that measures the cost efficiency of a project. The CPI compares the earned value (EV) of the work completed on the project to the actual cost (AC) incurred in completing that work. The CPI is used to determine whether a project is under or…
Cost of Quality (COQ) The Cost of Quality (COQ) is the amount of money it takes to make sure that a product or service meets the quality standards that are needed. This includes the costs of preventing problems, evaluating them, and failing. Prevention Costs: These are the costs that are paid to make sure that problems don’t…
Cost Plus Award Fee (CPAF) Cost Plus Award Fee (CPAF) is a type of contract in which the buyer pays the seller for the actual cost of the work done plus an extra award fee based on the quality of the work. The award fee is a performance-based reward that encourages the seller to do a better…
