EarnedValueTechniques - Earned Value Techniques for Project...

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Earned Value Techniques for Project Cost Control Dr. Robert Monson University of St. Thomas
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Copyright 2001 R.J.Monson Earned Value Concepts Earned Value (EV) is a cost management technique where the value of completed work is compared to actual costs and the scheduled costs Earned Value is expressed in terms of $’s, so that completed work can be compared to actual costs and spend plans
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Copyright 2001 R.J.Monson Earned Value Calculations EV is calculated by multiplying an estimate of the “task percent complete” by the total estimated cost for that task Example 5 week long task costing $10,000 Task reported as 37% complete Value of work completed => .37*10,000 = $3,700
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Copyright 2001 R.J.Monson Why use Earned Value? Consider a project where you are running at $90,000 or 90% of spend plan. In traditional reporting you would consider yourself under budget If the earned value of that work is $80,000, and the spend plan says $90,000, you would realize you are over budget as well as behind schedule
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Copyright 2001 R.J.Monson
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EarnedValueTechniques - Earned Value Techniques for Project...

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