Only Earned Value Analysis Assesses Status Correctly!
ADVISORY
By Dr. Kenneth Smith, PMP
Honolulu, Hawaii
& Manila, The Philippines
Relevant KPI’s:
The six Key Performance Indicators for understanding, and applying Earned Value Analysis are:
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- PV = Planned Value. [AKA Budgeted Cost of Work Scheduled, BCWS or BS.] The Amount Budgeted (i.e. Planned) for the cumulative Work Scheduled to be Completed to Date.[1]
- AC = Actual Cost of Work Performed, ACWP or AP. The Amount Actually ‘Committed’ for the Work Actually Completed to Date, regardless of Whether or Not it was Planned &/or Scheduled at this time; or completed Ahead, or Behind Schedule.
- EV = Earned Value. [Also known as the Budgeted Cost of Work Performed, BCWP or BP.] The Planned Value for the Work Completed to Date [i.e The original PV: The Work Budget, but without regard for Whether or Not it was completed Ahead, or Behind Schedule.] [NOTE: The EV KPI is unique to the Earned Value Methodology.]
- BAC = Budgeted Cost at Completion. Amount Planned for the Total Project.
- SPI & 6. CPI = Schedule and Cost Performance indices; %Variances from a base of 1.
Given a Project Schedule & Cost Baseline derived from a time-scaled network, with activity costs tied to completed-activity milestones, as depicted in Figures 1 & 2, the scene is set for subsequent implementation and performance monitoring.
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How to cite this article: Smith, K.F. (2025). Integrated Project Implementation Performance Monitoring: Only Earned Value Analysis Assesses Status Correctly! PM World Journal, Vol. XIV, Issue V, May. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/05/pmwj152-May2025-Smith-Only-Earned-Value-Analysis-Assesses-Status-Correctly.pdf
About the Author
Dr. Kenneth Smith
Honolulu, Hawaii
& Manila, The Philippines
Initially a US Civil Service Management Intern, then a management analyst & systems specialist with the US Defense Department, Ken subsequently had a career as a senior foreign service officer — management & evaluation specialist, project manager, and in-house facilitator/trainer — with the US Agency for International Development (USAID). Ken assisted host country governments in many countries to plan, monitor and evaluate projects in various technical sectors; working ‘hands-on’ with their officers as well as other USAID personnel, contractors and NGOs. Intermittently, he was also a team leader &/or team member to conduct project, program & and country-level portfolio analyses and evaluations.
Concurrently, Ken had an active dual career as Air Force ready-reservist in Asia (Japan, Korea, Vietnam, Indonesia, Philippines) as well as the Washington D.C. area; was Chairman of a Congressional Services Academy Advisory Board (SAAB); and had additional duties as an Air Force Academy Liaison Officer. He retired as a ‘bird’ colonel.
After retirement from USAID, Ken was a project management consultant for ADB, the World Bank, UNDP and USAID.
He earned his DPA (Doctor of Public Administration) from the George Mason University (GMU) in Virginia, his MS from Massachusetts Institute of Technology (MIT Systems Analysis Fellow, Center for Advanced Engineering Study), and BA & MA degrees in Government & International Relations from the University of Connecticut (UCONN). A long-time member of the Project Management Institute (PMI) and IPMA-USA, Ken is a Certified Project Management Professional (PMP®) and a member of the PMI®-Honolulu and Philippines Chapters.
Ken has two KENBOOKS: 1. Project Management PRAXIS which includes many innovative project management tools & techniques; and describes a “Toolkit” of related templates, and 2. MUSINGS on Project Management — a compilation of contemporary concerns in project planning, monitoring & evaluation, with some tools & techniques suggested for their solution. Either or both books are available from Amazon, and their related templates are available directly from him at kenfsmith@aol.com on proof of purchase.
To view other works by Ken Smith, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/dr-kenneth-smith/
[1] NOTE. Often Overlooked; PV & AC should be related to specific work Completion Milestones; They are NOT simply cumulative running costs vs the project schedule. AC & PV comparisons with EV — instead of each other –accurately pin-point the now–static status of historical project performance to date for reporting & forecasting.
