What is basic requirement for calculating the earned value in cost controlling?

The Earned Value Analysis (EVA) is a valuable technique to determine real gains and losses.

The main EVA variables (indicators) are:

·       BCWS (Budgeted Cost of Work Scheduled) - PV (Planned Value)

·       BCWP (Budgeted Cost of Work Performed) - EV (Earned Value)

·       ACWP (Actual Cost of Work Performed) - AC (Actual Cost)

·       SV (Schedule Variance) : VP = EV – PV; CV (Cost Variance): VC = EV - AC

·       SPI (Schedule Performed Index): SPI = EV / PV; SPI = 1 (project on time)

·       SPI <1 (performing less than planned); SPI > 1 (performing more than planned)

·       CPI (Cost Performed Index): CPI = EV / AC; CPI = 1 (project on budget)

·       CPI < 1 (spending more than planned); CPI > 1 (spending less than planned)