What Are The Components Of The And Evm

1017 Words Jan 14th, 2016 5 Pages
There are three basic components to EVM and EVM is well known for its use of acronyms. Planned Value (PV) is the scheduled cost of the work in a a specific given time. This is also known as Budgeted Cost of Work Scheduled (BCWS). This is developed by firstly taking the work that must be completed for a successful project outcome and this work is estimated, regardless of whether it is internal or outsourced. This estimate is then converted into a monetary value which reprents the specific currency portion of the ‘planned value’ of the specific task, which gives an idea of that the task has a worth to the business and is then scheduled based upon when the task is actually scheduled to happen within the project plan. Timing and amounts are then set out and the Planned value for the task is set. A project change being implemented is the only way this can be changed. The next component would be the Actual Cost, which is the actual amount of money which has been spent to date. This is also known as Actual cost of Work Performed (ACWP) and is the number in which finance is always most concerned about. This represents the actually monetary cash value that the business has to spend on the project. Actual cost is determined using the accounting system’s method for accumulation of cost. It can be helpful to collect costs established on a project account number or change number correlated with the costs and this number might change each day based on whether the project work was…
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