Earned Value (EV) measures the extent to which projects are making the desired progress. It allows companies to understand how much work has been completed as well as the costs of the work, both in relation to the project expectations.
EV = % complete x BCWP
Where BCWP is the Budgeted Cost of Work Performed = the total budgeted costs for labour and resources for the project.
Performance Level = (ACWC / EV) x 100
Where ACWC is the Actual Cost of Work Scheduled or the total amount in labour and resources that has been spent on the project to date.
This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.