Overview

The Earned Value Technique uses three simple measures to derive not only the project's health and status, but also provides some measure of insights into what the final project totals will look like. The three are: how much you predicted you would do by a certain point in the project, what you actually accomplished up to that point, and how much it cost you to achieve it.

Transcript: Earned Value

Instructions

You are a project manager whose job is to report the statistics on project health to upper management, using CPI and SPI as your indicators. In your main post, address the following issues

1. Earned value is essentially a measure of how much work you've accomplished. Is it always easy to tell? Describe a project environment where it is fairly easy to measure and observe progress, and one where it would be more difficult.
2. Planned value is a prediction of where you would be at a certain point in a project, having spent a certain amount of money. How does the uncertainty inherent in all predictions impact the accuracy of the measurements of project health?
3. If your accounting practices are solid, you should have a clear picture of what has been spent on a project so far. Additionally, you should have a good idea of what that money should have gotten you in advancing the project. Mention and discuss three reasons why you may end up with less to show for the money you've spent.