Question

What four measures (not SV, CV, SPI, or CPI) form the basis for all earned value performance assessments and forecasts? How is each defined? How is each used?

Management/finance

Answer 1

The four measures are as follows:

Planned Value, Earned Value, Actual Cost, and Budget at Completion.

1. Planned Value:- Planned Value is the cost of the work to be done in a given time and thus helps the project manager to keep track of the project costs.

2. Earned Value:- Earned Value is the amount of money that has been invested to date to complete work year. If the project was completed today, for example, the Earned Value will show the interest the project has generated.

3. Acutal Cost:- Actual costs are the amount of money spent so far on the actual project work year.

4. Budget at Completion:- The Budget at Completion is part of the original cost of the plan where you decide how much the entire project would cost, and is an amount of all the cost of the approved project until finished.