Table 1-2. Earned Value Calculations Summary Table Equation for EV is EV = sum of the planned value of completed work.
Do I interpret this by the Lexicon definition of PV?
If so, EV = sum of the authorized budget value of completed work. Saving Changes...
Correct. Planned value is the budgeted cost we assigned to each task due to be completed at any point in time. Earned value is the budgeted cost of the tasks actually completed at that point.
If you planned to have 2 task complete and each is 10 hours, your PV is 20. If you only completed one of those tasks, your EV is 10. This is not to be confused with Actual Cost (AC) which is what it took to complete the planned tasks. If you completed both tasks, but each took 12 hours, your EV is 20, your AC is 24, compared to your PV of 20.
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1 reply by Gerald Friesen
Jan 19, 2023 1:55 PM
Gerald Friesen
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Thanks for the confirmation. We are implementing a new PM module and the vendor has misinterpreted the calculation linking the PV to the schedule which causes the EV to fluctuate based on time not actual work completed. As the schedule advances, the EV changes without any progress in completing tasks.
Since PV and EV are different considerations, as Keith explained, we can determine that if the earned value is greater than the planned value, this indicates that the project is ahead of schedule; and contrary, if the earned value is lower than the planned value, this indicates that the project is behind of schedule. Saving Changes...
Correct. Planned value is the budgeted cost we assigned to each task due to be completed at any point in time. Earned value is the budgeted cost of the tasks actually completed at that point.
If you planned to have 2 task complete and each is 10 hours, your PV is 20. If you only completed one of those tasks, your EV is 10. This is not to be confused with Actual Cost (AC) which is what it took to complete the planned tasks. If you completed both tasks, but each took 12 hours, your EV is 20, your AC is 24, compared to your PV of 20.
Thanks for the confirmation. We are implementing a new PM module and the vendor has misinterpreted the calculation linking the PV to the schedule which causes the EV to fluctuate based on time not actual work completed. As the schedule advances, the EV changes without any progress in completing tasks. Saving Changes...
Latha Thamma reddiSr Product and Portfolio Management (Automation Innovation)| DXC TechnologyMckinney, Tx, United States
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