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Earned Value

What is Earned Value? Earned Value is an objective measurement on how much work is done on a project. Earned Value, Performance Measurement, Management by Objectives, and Cost Schedule Control Systems are synonymous terms. The use of either manufacturing standards or a Line-of-Balance methodology for measuring accomplishment on the factory floor is an earned value process.
Earned Value improves on the normally used spend plan concept (budget versus actual incurred cost) by requiring the work in process to be quantified. Using the earned value process, members of management can readily compare how much work has actually been completed against the amount of work. Earned Value requires the project manager to plan, budget and schedule the authorized work scope in a time-phased plan and the time phased plan is the incremental planned value culminating into a performance measurement baseline and as work is accomplished. Earned Value compared with planned value provides a work accomp...

Posted by: Jason Cashmere

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