Earned value project management

Planned value: This is the approved budget for the work scheduled to be completed by a set date. Thus this shows if the project is on budget or not. The budget of the project isUSD.

earned value management ppt

In the question, you have spent 60, USD on the project so far. Cost variance CV : This is the measure of the difference between the amount that was budgeted for the work meant to be done and the amount that was actually spent for the work performed.

There is no unique formula to calculate Actual Cost. In other words, it is the amount of money you have spent to date.

Multiply the actual percentage of the completed work by the project budget; you will get the Earned Value.

Earned value graph

It is an amount that has been spent, and you can find it easily in the question. Earned Value EV This is the third and last element of earned value management. Earned value: This is the approved budget for the work actually completed by the specified date. The basic principle of earned value management EVM is that the value of the piece of work is equal to the amount of funds budgeted to complete it. Earned Value is the value of the work actually completed to date. In the question, you have spent 60, USD on the project so far. In other words, it is the amount of money you have spent to date. There is a difference between Planned Value and Earned Value.

Six months have passed, and 60, USD has been spent. Actual Cost is the amount of money that you have spent so far. It is a relative measure of the cost efficiency of the project and can be used to estimate the cost of the remainder of the task.

The value added approach helps achieve greater visibility and control of the project activities which helps in responding to issues early on, thus making it possible to meet the project timelines.

Earned value analysis in project management

Actual costs: The costs actually incurred for the work completed by the specified date. Schedule performance index SPI : This is the ratio between the budget that is approved for the work that is performed to the budget that is approved for the work that was planned in the first place. Planned Value shows you how much value you expected to earn in a given time, while Earned Value shows how much value you have actually earned on the project. Six months have passed, and 60, USD has been spent. The budget of the project is , USD. There is a difference between Planned Value and Earned Value. Planned value: This is the approved budget for the work scheduled to be completed by a set date.

Earned value: This is the approved budget for the work actually completed by the specified date. Earned Value will show you the value that the project has produced if the project is terminated today.

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What is Earned Value in Project Management?