1. What is Earned Value in Project Management?

Earned Value (EV) is a project management technique that measures project performance and progress in an objective manner. It combines measurements of scope, schedule, and cost to provide a comprehensive view of project health.

2. How Does the Calculator Work?

The calculator uses the Earned Value formula:

Where:

• \( EV \) — Earned Value (currency)
• \( \%\ Complete \) — Percentage of project completion (decimal)
• \( BAC \) — Budget At Completion (currency)

Explanation: The formula calculates the value of work actually completed to date, providing an objective measure of project progress against the planned budget.

3. Importance of Earned Value Calculation

Details: Earned Value Analysis is crucial for project managers to objectively measure project performance, identify variances from the project plan, and forecast future performance based on current trends.

4. Using the Calculator

Tips: Enter the percentage of project completion (0-100%) and the total project budget (BAC). Both values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and actual cost?
A: Earned Value measures the value of work completed, while actual cost measures what was actually spent to complete that work.

Q2: How is % Complete determined?
A: % Complete can be measured through various methods including milestone completion, task completion, or physical measurement of work completed.

Q3: What is a good EV value?
A: Ideally, EV should equal the Planned Value (PV) for that time period, indicating the project is on track.

Q4: Can EV be greater than BAC?
A: No, EV cannot exceed BAC since it represents the value of work completed relative to the total budget.

Q5: What other metrics can be derived from EV?
A: EV is used to calculate Cost Variance (CV = EV - AC), Schedule Variance (SV = EV - PV), and performance indices (CPI, SPI).