Earned Value Management (EVM) Reference Card EVM Terminology ACWPActual Cost of Work Performed (Actual cost incurred for work accomplished during a given period) AUW Authorized Un-priced Work (Work contractually approved, but not yet negotiated) BACBudget At Completion (Total planned value for the project) BCWSBudgeted Cost for Work Scheduled (Planned Value - budget assigned to the planned scheduled work to be accomplished) BCWPBudgeted Cost for Work Performed (Earned Value - budget value for the physical work accomplished) CAControl Account (Management control point to plan and control scope, schedule, and budget) CBBContract Budget Baseline (Total negotiated cost plus AUW) EACEstimate At Completion (Expected total cost of the project when the scope of work will be completed) ETCEstimate To Complete (Expected cost needed to complete all remaining work) MRManagement Reserve (Budget withheld for unknowns / risk management) NCCNegotiated Contract Cost (Contract price minus profit or fees or project value for in-house work) OTBOver Target Baseline (Sum of CBB and recognized overrun) PBBProject Budget Baseline (Same as CBB for in-house projects) PMBPerformance Measurement Baseline (Time-phased budget plan) PPPlanning Package (Far term effort within a CA not yet defined into WPs) TABTotal Allocated Budget (Sum of all budgets for work on project/contract = NCC, CBB/PBB, or OTB) TCPITo Complete Performance Index (Efficiency needed from ‘status date’ to achieve an EAC or BAC) UBUndistributed Budget (Broadly defined effort not distributed into CAs) WPWork Package (Near term effort detailed planned within a CA) Revised July 2011 NASA EVM Website: NASA Policy & Requirements for the Application of EVM NASA EVM requirements are found in NPR , NASA Program and Project Management Processes and Requirements and NPR , NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements. Policy is contained in NASA FAR Supplement (NFS) NASA EVM requirements are predicated on the principles and guidelines in ANSI/EIA-748, Industry Guidelines for Earned Value Management Systems. NPR requires the project EVM approach to be in place by Key Decision Point (KDP) C (the conclusion of Preliminary Design Review (PDR)) and implemented in Phase C (Final Design and Fabrication) through KDP E (Flight Readiness Review (FRR) or Launch Readiness Review (LRR)). Additionally, project performance reporting must begin within 60 days after the start of Phase C. To meet this timeline, it is highly recommended that projects begin implementation planning during Phase B (Preliminary Design and Technology Completion). NPR also requires that NASA programs and projects use EVM on projects and contracts that meet the criteria that follow. 1.For projects with a total anticipated final value of $20 million or more, EVM principles should be applied, as defined by ANSI/EIA-748, Earned Value Management Systems. If the project's primary NASA Center has a validated EVMS, the project uses that system rather than the EVM principles application approach. 2.For development contracts and subcontracts valued at or between $20M and $50M, the contractor is expected to have an EVMS that complies with the 32 guidelines in the ANSI/EIA-748 Standard. 3.For development contracts and subcontracts valued at $50M or more, the contractor is required to have an EVMS that has been formally validated by the Government. 4.EVM is not required on contracts for non-developmental engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services or grounds maintenance services. In these cases, application of EVM is at the discretion of the program or project manager (PM). NASA projects that do not have a validated EVMS will use the seven management principles that are contained in ANSI/EIA-748 standard. UB WPs PPs CAs PMB MR CBB Fee/Profit (no Project analogy) Contract Price (Project Price) AUW OTB TAB PBB *NASA Contractor & In-house Project Hierarchy Favorable Causes: Poor initial planning or estimating Technical breakthrough Cost of labor & Material lower than plan Front end loading Method of earning BCWP Inaccurate costing methods Performance Indices: (Favorable is > 1.0, Unfavorable is < 1.0) Cost Performance Index (Efficiency): CPI = BCWP / ACWP Schedule Performance Index (Efficiency): SPI = BCWP / BCWS To Complete Performance Index (TCPI) TCPI EAC = Work Remaining / Cost Remaining = (BAC – BCWP Cum ) / (EAC – ACWP Cum ) TCPI BAC = Work Remaining / Budget Remaining = (BAC – BCWP Cum ) / (BAC – ACWP Cum ) Unfavorable Causes: Poor initial planning or estimating Technical problem Cost of labor or material higher than plan Inflation New labor contracts Work stoppage Estimate at Completion (EAC) = ACWP + ETC EAC = Actuals to Date + Work Remaining / Performance Factor EAC Composite = ACWP Cum + (BAC – BCWP Cum ) / (CPI Cum x SPI Cum ) EAC CPI = BAC / CPI Cum Status Percentage % Complete = BCWP Cum / BAC x 100 % Spent = ACWP Cum / BAC x 100 % Schedule = BCWS Cum / BAC x 100 CV SV Actual Costs (ACWP) Earned Value (BCWP) Planned Value (BCWS) $ EAC Time Now Performance Measurement Baseline (PMB) BAC Time Management Reserve (MR) TAB (CBB or PBB) Projected Slippage VAC ETC Variances: (Favorable is Positive, Unfavorable is Negative) Cost Variance (CV): CV = BCWP – ACWP CV% = CV / BCWP x 100 Schedule Variance (SV): SV = BCWP – BCWS SV% = SV / BCWS x 100 Variance at Completion (VAC): VAC = BAC – EAC NCC Plus Overrun Common EAC Calculations