Example of EVM in Action

In a construction project:

• Planned Value (PV): $100,000
• Earned Value (EV): $80,000
• Actual Cost (AC): $90,000

Analysis:

• CPI: $80,000 / $90,000 = 0.89 (indicating a cost overrun)
• SPI: $80,000 / $100,000 = 0.8 (indicating a schedule delay)

This analysis helps the project manager identify inefficiencies and implement corrective measures.