To use an earned value method

Earned value is a time-phased method of measuring project performance. Planned work is compared with completed work to determine if project costs and schedules are within budget. Usually contrasted with more conventional bottom-up performance measurement techniques.

Following are the ways in which you can use the earned value method to determine how budget amounts are to be released:

  • Discrete Effort

    The ways in which you can use the earned value method of type Discrete Effort are:

    • Milestone
      Milestones are attached to the activity and a percentage or amount of the budget is assigned to each milestone. Each time a milestone is reached, the assigned budget is released.
    • Start and End Percentage
      Percentage values are assigned to the start and end points of the activities. In other words, at the start of the activity, it is assumed that a particular percentage of the project has been completed. Budget amounts are then released based on these percentages.
    • Percent Complete
      Budget amounts are released in proportion to the percentage progress of the project.
  • Level of Effort
    Budget amounts are released in proportion to effort. This method is appropriate for time-driven activities where there it is assumed that there will be no discrepancy between planned value and earned value.
  • Apportioned
    Apportioned efforts are those which have an intrinsic performance relationship to some other discrete activity. Budget amounts are released in the same way as for the discrete activity. The linked activity for the Earned Value must not be of the type Apportioned.

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