Earned Value Technique is an excellent way to track the Project Progress against the Project Plan. Its a method of objectively measuring project performance against the Project baseline. Result from an Earned Value analysis indicate deviation of the Project from cost and schedule baselines Let me quickly ask you what is a Baseline? I have already explained this earlier..but just to provide a quick recapbaseline means first approved value. So schedule baseline means, the first approved Project Schedule. There are various terms used in Earned Value Techniques. All these terms are listed in this slide. Please go through the same. They are quiet self explanatory. For example, PV, meaning Planned Value, is the Estimated Value of the Work Planned to be done. This value is measured in terms of currency, say dollar. So, if planned value is 0, it was planned to do work worth 340 dollars. But, how do you calculate Earned Value? Its quiet simple. Just add the budget allocated to each of the activities that have completed at that point in time. The resulting value is Earned Value at point of time. All other parameters listed in this slide are also measured in terms of currency only.
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