How To Calculate Earned Value
Earned value is a project management technique that is used to measure the project's progress. It allows you to check up on how much of the project budget has been spent and lets you gauge how the project is moving along in an objective manner. It basically combines scope, schedule and cost and lets you see if the project is over or under budget.
Since this is a mathematical procedure designed to calculate monies spent on a project, most managers should know it as it is a helpful formula in keeping tabs on expenses. This allows you to be on top of the project's expenses and schedule and allows you to adjust accordingly in places where too much has been spent with little return.
The formula seems complex and confusing but it is actually quite simple. The best thing about the formula is that it is objective and factual. No excuses can be offered up to the results discovered in earned value.
