ABSTRACT
Earned value analysis can be regarded as the missing link between cost reporting and cost control. It depends on the existence of a sound framework of planning and control. The earned value process aims to compare the costs incurred for an accurately identified amount of work with the costs budgeted for that same work. It can be applied at the level of individual tasks or complete work packages and the data are usually rolled up for the whole project. The procedure uses the results to produce a cost performance index. A construction project lasting just over one year is the basis for this example and the relevant graphs. This might be for a small building on an airport. A similar approach can be followed for any project in aviation or any almost any other industry. Every change introduced into a project can be expected to have some effect on the level of achievement attained by the departments involved. Each unfunded change affects the total workload remaining, usually with no corresponding change to the authorized budgets.
