Earned Value
2 July 2021
Earned Value (EV) measures the extent to which projects are making the desired progress. It allows companies to understand how much work has been completed as well as the costs of the work, both in relation to the project expectations.
EV = % complete x BCWP
Where BCWP is the Budgeted Cost of Work Performed = the total budgeted costs for labour and resources for the project.
Performance Level = (ACWC / EV) x 100
Where ACWC is the Actual Cost of Work Scheduled or the total amount in labour and resources that has been spent on the project to date.
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
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Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.
He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.
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