Project Management: Achieving Competitive Advantage, Fifth Edition

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13.1 EXAMPLE OF EARNED VALUE

The Project Management Institute, the largest professional organization of project management professionals in the world, has developed a simple example of the logic underlying earned value assessment for a project. It demonstrates in the following steps the calculation of the more relevant components of earned value and shows how these steps fit together to contribute an overall understanding of earned value.

Earned value is a management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned, budgeted, and scheduled in time-phased planned value increments constituting a cost and schedule measurement baseline. There are two major objectives ...