Accurate project cost and schedule performance measurement is critical for successful project delivery. The Budgeted Cost of Work Performed (BCWP), also known as Earned Value (EV), quantifies the value of completed work based on the original budget. For example, if a project task budgeted at $10,000 is 50% complete, the BCWP is $5,000. This metric forms the foundation of Earned Value Management (EVM), a powerful methodology for integrating project scope, schedule, and cost data.
This structured approach provides objective insights into project progress, enabling proactive identification and mitigation of potential cost and schedule overruns. By utilizing these data-driven insights, stakeholders can make informed decisions, optimize resource allocation, and improve overall project outcomes. The historical development of EVM can be traced back to the 1960s within the United States Department of Defense, evolving into a widely adopted project management best practice across various industries.
