You are the project manager working on building the first prototype of a new whiz-bang gadget. You are about 2 months into the project, which was projected to be 10 months long in the beginning, with a budget of $2,000,000 USD.
Let’s take a look at your project with EVM with the goal of making a forecast as to when the project will be done and what the total cost will be.
To start with, you take a look at your project schedule. You count the tasks that should have been done at this time, which comes to 25. Add up the total budgeted cost for those 25 work packages, and you get $450,000 USD. What is your PV, or BCWS?
PV = $450,000 USD.
Now, you see that you are actually finished with only 23 work packages. (Personally, I wouldn’t give any earned value unless a task is fully finished) Add up the total budgeted cost for those 23 work packages you actually did, and you get $420,000 USD. What is your EV, or BCWP?
EV = $420,000 USD.
Finally, add up the actual cost for those 23 work packages you actually did, and you get $415,000 USD. What is your AC, or ACWP?
AC = $415,000 USD.