BUS1100 Measuring EVM Performance Month Two

In this video a Government Program Manager (PM) and the Contractor's Program Manager (PM) are discussing the performance of their program based on Earned Value Management (EVM) data from the second month of execution.  The contractor has run into supply problems.  The PMs compare the Budgeted Cost of Work Performed (BCWP) to the Budgeted Cost of Work Scheduled (BCWS) and the Actual Cost of Work Performed (ACWP) to determine how the effort is doing with regard to cost and schedule after the second month.  Comparing BCWP to BCWS indicates that the program is still ahead of schedule.  However, comparing BCWP to ACWP indicates that the program is now overrunning the planned cost at this point in the effort. The PMs have to start considering what actions should be taken.