EV and PV are key components of Earned Value Management (EVM), a project management technique used to measure project performance. They stand for Earned Value and Planned Value, respectively.
- Earned Value (EV), also known as Budgeted Cost of Work Performed (BCWP), represents the value of the work actually completed. It tells you, in monetary terms, what the project has accomplished to date. It's calculated as the planned cost of the work that has been completed.
- Planned Value (PV), also known as Budgeted Cost of Work Scheduled (BCWS), is the authorized budget assigned to scheduled work. It represents the planned cost of work scheduled to be completed by a specific point in time. It's determined by the cost and schedule baseline.
Essentially, EV tells you how much work you actually completed in terms of the original budget, while PV tells you how much work you should have completed, also in terms of the original budget. Comparing EV and PV allows you to understand if your project is ahead of or behind schedule. If EV > PV, you are ahead of schedule. If EV < PV, you are behind schedule.
Here's a table summarizing the key differences:
| Feature | Earned Value (EV) / BCWP | Planned Value (PV) / BCWS |
|---|---|---|
| Definition | The value of work actually completed. | The planned cost of work scheduled to be completed. |
| Purpose | Measures the amount of work accomplished. | Measures the amount of work that should have been accomplished. |
| Perspective | What was actually achieved. | What was planned to be achieved. |
| Calculation | (Percentage of work completed) x (Budget at Completion) | The budgeted cost of the work scheduled. |
In short, EV and PV are essential metrics for tracking project performance and identifying potential schedule variances. Understanding these concepts is critical for effective project management and control.
