The formula for calculating Planned Value is: PV = % of project completed (planned) x Budget at completion (BAC – Budget at Completion which is the total budget of the project). If you are lucky enough to have a linear project where time and cost are the same every day to completion, Planned Value will be very simple.
What is PV in project management?
Defined by the PMBOK Guide as the authorized budget assigned to work to be accomplished for an activity or WBS component, PV is work scheduled to be completed over a given time. PV can be determined by analyzing the schedule and multiplying the planned percentage of the completed work by the project budget.
How do you calculate planned value?
The total PV is also known as performance measurement baseline (PMB), budget at completion (BAC), or more often as Budgeted Cost of Work Scheduled (BCWS). You can calculate Planned Value (PV) using the relation: PV= BAC x Planned % of complete.
How do you calculate budgeted actual cost?
It is calculated from the project budget. For example, if the actual percent complete is 75% and the task budget is $10,000, EV = 75% x $10,000 = $7,500. Actual Cost (AC): Also known as Actual Cost of Work Performed (ACWP), Actual Cost is the real amount that has been spent on the task.
What is the formula for Earned Value?
Earned Value (EV) = total project budget multiplied by the % of project completion.
What is Planned Value in p6?
Planned Value Cost (PV) = Budget At Completion * Schedule % Complete. Earned Value Cost (EV) = Budget At Completion * Performance % Complete (usually equal to Activity % Complete) Schedule Variance (SV) = EV – PV.
Is the earned value minus the Planned Value?
Earned value represents the amount of work we performed in terms of its planned value. … It is calculated as the earned value minus the planned value (SV = EV – PV).
How do you do earned value analysis?
The 8 Steps to Earned Value Analysis
- Determine the percent complete of each task.
- Determine Planned Value (PV).
- Determine Earned Value (EV).
- Obtain Actual Cost (AC).
- Calculate Schedule Variance (SV).
- Calculate Cost Variance (CV).
- Calculate Other Status Indicators (SPI, CPI, EAC, ETC, and TCPI)
- Compile Results.
How would a project manager use the CPI?
How would a project manager use the CPI? Project managers can use CPI to measure the cost efficiency of project related work accomplished to date. It’s useful as an early warning signal and allows project managers to make budget or scope adjustments.