Earned Value

Earned value is a technique for measuring project performance according to both project cost and schedule. This technique compares budgeted or planned cost of the work to the actual cost. While earned value analysis are typically performed for WBS elements, you can also perform an earned value analysis for activities and groups of activities.

In order to perform an earned value analysis, you must specify two calculation techniques. These techniques apply to activities that are currently in progress. The first technique is used to calculate an activity's percent complete. The second technique is used to calculate an activity's Estimate to Complete (ETC). A set of options is provided for both of these techniques, and you can set these options for each WBS element.

The fundamental earned value parameters used to calculate an activity's Estimate to Complete are: Earned Value Cost; Budget At Completion (BAC); Planned Value Cost; and, Actual Cost. You can derive an activity's Estimate to Complete and other earned value indexes from these parameters.

If you are the administrator for your organization, you can specify default earned value techniques for WBS elements.

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Analyze costs