Join Aileen Ellis for an in-depth discussion in this video Calculating BAC, PV, EV, and AC, part of Project Management: Calculating Earned Value.
Let's take another example.…In this example, we have a system upgrade project.…This table is a typical earned value representation…of a project.…Let's interpret the table one column at a time.…It's important to see the note at the bottom.…All the numbers are cumulative numbers.…The first column is months.…We can see that the project plan is for…a four month project.…The next column is the Planned Value.…
This column tells us how much work is planned…to be accomplished each month cumulatively.…At the end of Month 1 we should have $100,000 worth…of work complete.…At the end of Month 2, $200,000 worth of work complete.…At the end of Month 3, $300,000 worth of work complete.…And at the end of Month 4 or for the whole project,…we should have $400,000 worth of work complete.…
The key word there is should,…or a key word would be the word planned.…The next column is the Earned Value.…Earned Value is a measure of how much work is complete.…We can see at the end of Month 1 we have $30,000 worth…of work complete.…We can see at the end of Month 2…
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.