Earned Value Buzz Words / Glossary

Here is a list of some common words you might notice when reading about Earned Value Charts and Schedules. For more information and some sample schedules, check out our Earned Value Examples.
  BUZZWORD    MEANING
  Actual Cost (AC)  The costs actually incurred in performing the planned work.
  Actual Cost of Work Performed (ACWP)   Previous term for Actual Cost (AC).
  ANSI/EIA 748 Standard   The official standard of accepted criteria for EVM. These 32 criteria replaced the original 35 criteria in the C/SCSC
  Budget At Completion (BAC) The total of all budgets allocated to a project.
  Budget A fiscal plan of operations for a given time period. 
  Budgeted Cost of Work Performed (BCWP)   Previous term for Earned Value (EV).
  Budgeted Cost of Work Scheduled (BCWS)   Previous term for Planned Value (PV)
  Cost/Schedule Control System Criteria (C/SCSC) Since 1967, these 35 criteria have been used to ensure the government that contracts are managed properly.  In December of 1996, these 35 standards were superseded by 32 Earned Value Management standards.
  Cost Performance Index (CPI)   Cost variance related as a ratio instead of a dollar amount.  A ratio less than 1 indicates that the value of the work that has been accomplished is less than the amount of money spent.  CPI = (EV / AC).
  Cost Variance (CV) The difference between the work that has been accomplished (in dollars) and how much was spent to accomplish it. CV = (EV - AC).
  Earned Value (EV)  The actual measured performance; the value of the completed work. EV = (Budget x %Complete) for a given task or project.
  Estimate at Completion (EAC) A forecast of total costs that will be accrued by project completion, based on past cost performance trends. 
  Gantt Chart A common way of showing tasks over time.  
  Milestone  An important event. 
  Percent Complete   Physical progress as of the current date, related as a percentage of the task's duration. For summary tasks, Percent Complete = (EV / Budget).
  Planned Value (PV)   The sum total of the budgets for the planned work scheduled to be done within a specified time.  
  Schedule Performance Index (SPI)   Schedule Variance related as a ratio instead of a dollar amount.  A ratio less than 1 indicates that work is being completed slower than planned.   SPI = (EV / PV).
  Schedule Variance (SV)   The difference between what was planned to be completed and what has actually been completed as of the current date.  SV = (EV - PV).
  Statement of Work (SOW)  A document describing the work to be done on the contract.
  To-Complete Performance Index (TCPI)   Indicates the CPI that will be required throughout the remainder of the project in order to stay within the stated budget.
  Variance at Completion (VAC)   The difference between the new Estimate-at-Completion (EAC) and the original Budget-at-Completion (BAC).
  Work Breakdown Structure (WBS)  A tree-like representation of the work to be done on a project.  The WBS graphically shows the division of work.