Written by 8:45 AM

Earned Value (EV)

« Back to Glossary Index« Back to Previous Page

Definition:
A measure of the value of work actually performed in terms of the approved project budget.

Key Components:

Use Cases/Industries:

  • Construction: Measuring progress of completed vs. planned structural work.
  • Energy Sector: Assessing the installation percentage of wind turbines.
  • Software Development: Tracking completed vs. planned coding milestones.

Advantages:

  • Integrates cost and schedule performance.
  • Helps forecast total project costs.
  • Enables early identification of performance issues.

Challenges:

  • Requires precise tracking of work completion.
  • Misinterpretation can lead to inaccurate performance assessments.

Related Terms:
Planned Value, Estimate to Complete, Cost Performance Index

Example:
If 50% of a $1M project is completed, EV = $500,000.

Visited 1 times, 1 visit(s) today
Synonyms:
Value of Work Performed, Progressed Work Budget, Completed Scope Value
« Back to Previous Page« Back to Glossary Index
Close