From the course: Project Management Foundations

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How and when to use earned value analysis

How and when to use earned value analysis

From the course: Project Management Foundations

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How and when to use earned value analysis

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- With Earned Value Analysis, a project earns value by completing work. It helps you evaluate project schedule and cost performance. Government projects typically require it. Earned Value Analysis is helpful because project measures can be deceiving. Say 50% of your project's duration has passed, and 50% of the budget has been spent. Sounds like things are right on track, but if only 25% of the work is complete, there's a problem. You have to finish 75% of the work, with only 50% of the time and money left. I don't know about you but I would not count on that happening. Earned Value Analysis uncovers problems like these, because it looks at your schedule, and budget in monetary terms over time. Of course costs are already money based, but you also measure work in terms of money, by calculating how much it costs for people to perform the work. Earned Value Analysis is based on three measures, calculated through the project status date. First, you measure planned value. That's how much…

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