Calculate Earned Value, EAC, ETC, and Other Metrics

Earned value (EV) is a technique for determining the true cost or value of work. EV is expressed in terms of the approved budget that is assigned to a given work breakdown structure or scheduled activity. Earned value is also referred to as the budgeted cost of work performed (BCWP).
ccppmod143
Earned value (EV) is a technique for determining the true cost or value of work. EV is expressed in terms of the approved budget that is assigned to a given work breakdown structure or scheduled activity. Earned value is also referred to as the budgeted cost of work performed (BCWP).
Use earned value metrics to review historical performance and predict future performance. You can display earned value fields on any portlet or list page for tasks or projects. Use CA PPM Studio to personalize these project and task attributes on your own page or work with your administrator to configure the page or portlet for other users at the system level.
Default Earned Value Options
If your organization uses the earned value management methodology for measuring project performance, you can set the project-level default earned value calculation method. Use the fields in the Earned Value section of the scheduling properties page to set the method. You can also use this page to associate your project to an earned value reporting period.
The earned value reporting period defines the frequency and the interval for the Update Earned Value History job. The job takes historical earned value snapshots of performance and saves them in the earned value history table. When using earned value methodologies to analyze project performance, the job uses the earned value reporting period to take the snapshot. The product saves the snapshot that is based on the project that is association to the period. The project manager associates the project to the appropriate period.
Update Project Task Cost Totals
Update cost totals for your project when you create a baseline, update a baseline, or change the task information (an input for earned value calculations). Update the total costs to view earned value calculations and costs such as ACWP, BCWP, EAC, and ETC with typical and atypical variances.
The ETC (Cost) is calculated using a project-level or resource-level cost rate. If the project is associated with a cost/rate matrix that defines rates for charge codes and roles, then the task-specific values are not used to determine the cost rates. Instead, the project charge code or resource primary role is used. To generate ETC costs at a team or task level, create financial plans populated by the team allocations or task assignments.
 Rolled-up cost or earned value data from child projects are not available on the program or project list views. The program portlets display rolled-up data from child projects but the data is inaccurate if a hierarchy of two or more levels is involved. Also, the data that displays for the master project does not take in account the data from the child projects. 
To view rolled-up financial data from parent and child projects, use the Hierarchy tab on projects and programs. See Manage Project Hierarchies.
Follow these steps:
  1. Schedule the Rate Matrix Extraction job to run periodically.
  2. Open the project and click
    Tasks
    .
  3. Open the
    Actions
    menu, and from
    General
    , click
    Update Cost Totals
    .
  4. Open the
    Tasks
    menu and click
    Gantt
    .
Earned Value Metrics
You can use the earned value (EV) fields to track work performance to account for cost and schedule variances. Baseline information is factored in to the calculations performed in earned value analysis. All earned value fields contain the fundamental calculations that are used for earned value analysis (EVA). The following EV values are calculated for every scheduled activity:
BAC
The field displays the system-calculated value of Budget at Completion (BAC), which is the budgeted total cost at the time of the baseline.
  BAC = ((Actuals + Remaining Work) x actual cost) taken at time of baseline
Current Baseline Required:
Yes
BCWS
The field displays the system-calculated value of Budgeted Cost of Work Scheduled (BCWS). BCWS is the budgeted amount to spend on the project in a given time period. If not specified, the date is either the project As-Of date, or the system date. BCWS is also referred to as the planned value (PV). 
  BCWS = Sum of BAC through a point in time
Current Baseline Required:
Yes
ACWP
The field displays the system-calculated value of Actual Cost of Work Performed (ACWP). The amount is updated when you select the Update Cost Totals action or run the job. This value is the total direct cost (based on posted actuals) that is incurred in performing work during a specified period. The cost calculation includes all actuals posted up until the as-of date or the system date (if no as-of date is provided). ACWP is calculated at the following levels:
  • Assignment
    Actual cost is calculated as part of the posting process for actuals that are based on the financial cost matrix.
  • Detail-task
      ACWP = Sum of Actual Cost for all the assignments on the task
  • Summary-task
      ACWP = Sum of ACWP for all detail tasks in project
  • Project
      ACWP = Sum of ACWP for all summary tasks in project
Current Baseline Required:
 No
BCWP
The field displays the system-calculated value of Budgeted Cost of Work Performed (BCWP). The value is calculated and recorded when you baseline a project, or when you update earned value totals. BCWP is also referred to as the earned value (EV). BCWP represents the amount of the budgeted cost (BAC) completed based on performance as measured using the Task EV Calculation method. Calculations are made based on the level at which the calculation is made. BCWP is calculated at the following levels:
  • Task
    : BCWP is based on the selected EV calculation method.
  • Project
    : BCWP is the sum of BCWP for all WBS Level 1 tasks in the project.
Current Baseline Required:
Yes
EAC
The field displays the total estimate at completion (EAC). This value represents the aggregate total cost of all actuals over the entire life of the project.
  EAC = ACWP + [(BAC – BCWP) / CPI]
EAC (T)
The field displays the system-calculated value of Estimate At Completion (EAC). This calculation is most often used when current variances are seen as typical of future variances. 
  EAC (T) = ACWP + ETC
Current Baseline Required:
No
EAC (AT)
The field displays the system-calculated value of estimate at completion (EAC). This calculation is most often used when current variances are seen as atypical. And the project management team expectations are that similar variances will not occur in the future.
  EAC (AT) = (ACWP + (BAC - BCWP))
Current Baseline Required:
Yes
ETC (AT)
Displays the system-calculated value of estimate to completion (ETC) using earned value data. This calculation is most often used when current variances are seen as atypical. And the project management team expectations are that similar variances will not occur in the future.
  ETC (AT) = BAC - BCWP
Current Baseline Required:
Yes
ETC (Cost)
The field displays the system-calculated value of Estimate To Completion (ETC).
  ETC (Cost) = remaining labor cost + remaining non-labor cost
Current Baseline Required:
No
: The ETC (Cost) is calculated using a project-level or resource-level cost rate. If the project is associated with a cost/rate matrix that defines rates for charge codes and roles, then the task-specific values are not used to determine the cost rates. Instead, the project charge code or resource primary role is used. To generate ETC costs at a team or task level, create financial plans populated by the team allocations or task assignments.
ETC (T)
Displays the system-calculated value of estimate to completion (ETC) using earned value data. This calculation is most often used when current variances are seen as typical of future variances.
  ETC (T) = (BAC - BCWP)/CPI
Current Baseline Required:
Yes
The following values are used together to determine if work is performed as planned. The most frequently employed measures are:
CV
The field displays the system-calculated value of Cost Variance (CV). The CV is the value of what you accomplish to date as opposed to what you spend to date.
  CV = BCWP - ACWP
Current Baseline Required:
Yes
SV
The field displays the system-calculated value of Schedule Variance (SV). The SV is the value of what you schedule to date as opposed to what you performed to date. A positive value indicates that the work is ahead of the baseline schedule. A negative value indicates that the work is behind the baseline schedule.
  SV = BCWP - BCWS
Current Baseline Required:
Yes
CPI
The field displays the system-calculated value of Cost Performance Index (CPI), which is an efficiency rating for work accomplished. A value equal to or greater than one indicates a favorable condition. A value less than one indicate an unfavorable condition.
  CPI = BCWP / ACWP
Current Baseline Required:
Yes
SPI
The field displays the system-calculated value of Schedule Performance Index (SPI). The value is the ratio of the work that you perform to the work that you schedule. A value less than one indicates that the work is behind schedule.
  SPI = BCWP / BCWS
Current Baseline Required:
Yes
Earned Value Calculation Methods
An earned value calculation method is the method for calculating the various earned value (EV) metrics. Some of the methods are system-calculated. For methods that are not system calculated, manually enter the Budgeted Cost of Work Performed (BCWP) for your project. If you use an EV calculation method for your project and all of its tasks that are not system-calculated, define your project BCWP value. To define the value, baseline the project or update the earned value totals. You can also override BCWP for specific tasks.
Regardless of the earned value calculation method that you set for your project, the value that you enter in the BCWP Override field overrides the system-calculated BCWP values. The value is used in all EV calculations that require BCWP as a parameter. The following EV calculation methods are available:
  • Percent Complete (PC)
    Defines an estimate that is expressed as a percent of the amount of work that has been completed on a task or Work Breakdown Structure. The EV calculation method where Budgeted Cost of Work Performed (BCWP) is system calculated using the following formula:
      BCWP = Budget at Completion (BAC) * % complete
  • 0/100
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is system-calculated using the following fixed formula: 
      If % complete = 100, then BCWP = Budget at Completion (BAC); otherwise, BCWP = zero.
    Use this method when project work begins and completes in a single reporting period. Also, use when credit is only earned when the project or task is 100 percent complete.
  • 50/50
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is calculated using the following formula:
      If % complete > zero and < 100, then BCWP = Budget at Completion (BAC) / 2
      If % complete = 100, then BCWP = BAC  If % complete = zero, then BCWP = zero
    Use this method when project work begins and completes within two reporting periods. Also, use the method when 50 percent credit is earned when a project or task is started and the remaining 50 percent is earned upon completion.
  • Level of Effort (LOE)
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is system-calculated using the following formula:
      BCWP = Budgeted Cost of Work Scheduled (BCWS)
  • Weighted Milestones
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is user-defined. The project manager assigns weights to milestones across the duration of the summary task. As each milestone in the summary task is reached, a specific percent of the work is completed until 100 percent is reached. Use this method if your organization uses earned value management methodology for measuring project performance. When you use this method, you enter the BCWP at the task level. Use the BCWP Override field in the Earned Value section of the task properties page.
  • Milestone Percent Complete (PC)
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is not system-calculated but user-defined. Dollar amounts are selected for the weighting of each time period, instead of a percentage. EV credit is earned as a percent of the milestone value assigned. Use this method if your organization uses earned value management methodology for measuring project performance. When you use this method, you enter the BCWP at the task level. Use the BCWP Override field in the Earned Value section of the task properties page.
  • Apportioned Effort (AE)
    Defines the EV calculation method where Budgeted Cost of Work Performed (BCWP) is not system-calculated but is user-defined. Task work effort is tied to other task work efforts. As the base task completes work, the apportioned task earns completed work. The task uses the work effort that is tied to other tasks to drive its performance. Use this method for discrete work that is related to other discrete work. Use this method if your organization uses earned value management methodology for measuring project performance. When you use this method, you enter the BCWP at the task level. Use the BCWP Override field in the Earned Value section of the task properties page.
How Earned Value Calculation Methods are Applied
By default, the earned value (EV) calculation method for projects and tasks is percent complete. If your organization uses earned value management methodology for measuring project performance, your 
Clarity Project and Portfolio Management (PPM)
administrator can change the default earned value calculation method setting. Change the setting to the method your company uses for projects and tasks.
Best Practice:
Have your 
Clarity Project and Portfolio Management (PPM)
administrator define the object-level default setting for projects and tasks. In this way, the EV calculation method defaults to this object-level setting when you create projects or tasks.
You can override the object-level EV calculation method setting at the project and at the task level. When calculating the earned value metrics, the EV calculation method setting you establish at the task level is used. The results are rolled up to the project. If you do not define a method for the task, the task inherits the method from its parent task. If you do not define the method for the summary task, it inherits the method value from the project. If you do not set the method for the project, the task is ignored when the earned value is calculated.
If you create projects from project templates, you can set the EV calculation method in the project template. The projects, which are created from the template, inherit the setting.
If you are using the product with Microsoft Project and specify an earned value calculation method other than percent complete, use 
Clarity Project and Portfolio Management (PPM)
to calculate, display, and report earned value metrics.