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The deviations between planned and actual performance in a project can be described mathematically as variances. In general, there are two types of variances to watch for: cost variances and schedule variances. Both variances can help you discern the differences between the baseline plan estimates and the actual project performance, and are expressed as actual values.
Open Workbench uses the cost and schedule variances to calculate performance and percent complete indices. These indices provide you with a useful indication of the extent to which your project is ahead or behind cost or schedule. It is important that you review these variances and indices throughout a project's lifetime to monitor ongoing performance and pinpoint problem areas.
Open Workbench includes fields containing the fundamental calculations used for earned value analysis. These fields are available as discrete items for reporting purposes and you can add them to any view. These fields are used primarily as variables by other calculated fields to produce variance values.
Earned value calculates the following values for every scheduled activity:
The budgeted amount to be spent on the project in a given period of time.
The total direct and indirect cost incurred in performing work during a given period of time.
The percentage of the total budget equal to the percentage of the actual work performed.
These values are used together to determine if work is being performed as planned. The most frequently employed measures are:
Cost Performance Index (CPI), where CPI is equal to BCWP divided by ACWP.
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