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I am struggling to get all the PMI EVM terminology sorted out. The last key for me was planned value (PV).

Let say I have a task and my BAC is $100,000 and scheduled for 4 weeks.

2 weeks in I am done 40% of the work and spent $50,000. So:

  • PV: $50,000
  • EV: $40,000
  • AC: $50,000
  • CPI: 0.9 (over budget)
  • SPI: 0.9 (behind schedule)

6 weeks out I am done 90% of the work and spent $105,000. So:

  • PV: $100,000 (according to the original baseline schedule 4 weeks should have got me $100,000 of EV)
  • EV: $90,000
  • AC: $105,000
  • CPI: 0.86 (more over budget)
  • SPI: 0.9 (still behind schedule)

7 weeks out I am done 100% of the work and spent $112,000. So:

  • PV: $100,000 (according to the original baseline schedule 4 weeks should have got me $100,000 of EV)
  • EV: $100,000
  • AC: $112,000
  • CPI: 0.90 (over budget)
  • SPI: 1.00 (always 1 when complete)

My questions (have I explained / understood this correctly?):

  • As soon as you are past your original budgeted timeline for a task your PV = BAC
  • PV is the cost you should have accrued if your original schedule was correct (for the same time frame)
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Everything you wrote is correct. Your last bullet my read better as, "PV is the amount of cost accrued at a certain time on the project's timeline."

In your example, your PV was distributed equally across time, i.e., at the end of two weeks you should have 50% of work. Just be aware of you're not already that PV is rarely equal across time.

SPI always approaches 1 as you indicated, which is why EV is not a great schedule control tool. Have a look at Earned Schedule. It is superior to EV to control your schedule.

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    I am well aware that PV is not linear and it was clear right away that EVM is not good at the schedule side. That is a whole other issue. The CPI and forecasting formulas are pretty good. I had BAC and PV mixed up original (though they were the same). It's one of these 💡 moments.
    – Dan Tappin
    Feb 12 at 1:45

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