Cost Control Equations

Cost Variance = BCWP – ACWP

• You’ve overspent when the ACWP > BCWP
• You underspent when the ACWP < BCWP
• And on-target when the ACWP = BCWP

Schedule Variables = BCWP – BCWS

• You’re behind schedule (late) when the BCWS > BCWP
• You are ahead of schedule (early) when the BCWP > BCWS
• And on-target when the BCWP = BCWS

Project Overrun = The difference between the EAC (your revised time estimate) and the BAC (your original estimate) when the ACWP and BCWP lines are extended to the new finish date on your “S curve.”  In short, EAC – BAC.

Projected Slippage = The difference between the BCWS and the BCWP lines when both are extended to the revised completion date on your “S curve.”

Cost Performance Index = BCWP / ACWP.  NOTE:  Values of 1 or more indicates that the project is performing in a satisfactory manner from a cost standpoint.

Schedule Performance Index = BCWP / BCWS.  NOTE:  Values of 1 or more indicates that the project is performing in a satisfactory manner from a schedule standpoint.

Percent Complete = Actual cost (or work hours to date) / Forecast @ completion.

EAC = (Actual $ spent to date) + (Cost estimate of the remaining scope of work).

BAC = (Value of original budget) + (Approved scope changes and change orders).

Earned Value = % complete x (Budget for that account).