Project management

Earned value

Student’s name

Institution

Date

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Project management

Earned value gives a clear picture than a simple plan versus the actual system because

earned value incorporates the value of the actual work done and finished to a certain time frame.

The earned value measures the amount of work or job done as per the current time.it is mainly

used for managing how the project is going on and getting to know better about the project

because these are usually the main queries from your project manager and your customers.

Earned value is the amount of job done as per the budget allocated to the work in the

work breakdown structure (Chen 2016). it is a clear measure of work performance and somehow

investment return, it shows how much you have gained from the funds you have invested in a

certain task as per the current time. a simple plan mainly involves planning what you wish to

earn in a certain period while the earned value is the actual earnings when your planning time

elapses. Earned value is obtained by multiplying the budget allocated for certain work with the

measure of work done (in % form).

To differentiate earned value with simple plan versus actual system let's take the

following scenario (Acebes 2014). the planned work was to take three works and a budget of

200,000$, the actual work cost 150,000$ for two weeks while the earned value cost 100,000$ for

one week. the above scenario shows how an earned value is the precise ideal to provide a piece

of timely information about the performance of the project.

In conclusion, to have an earned value you need to have all that is required to calculate it

to have accurate and precise results.

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References

Chen, H. L., Chen, W. T., & Lin, Y. L. (2016). Earned value project management: Improving the

predictive power of planned value. International Journal of Project Management, 34(1), 22-29.

Acebes, F., Pajares, J., Galán, J. M., & López-Paredes, A. (2014). A new approach for project

control under uncertainty. Going back to the basics. International Journal of Project Management, 32(3),

423-434.