Milestone (value)
Milestones are linked to the activity and a percentage or amount of the budget is assigned to each milestone. When a milestone is reached, the assigned budget is released.
- Planned Value
Budget amounts are released based on these percentages or amounts during the scheduled start date and scheduled end date period, respectively (based on the latest approved baseline).
Note: At least one milestone must be linked to the activity to view the Planned Value/Time Phased Budget in PCL. - Earned Value
Earned values are assigned during the period of actual completion of a milestone (as defined in the Milestones(tppss2101m000) session.
Example
- Activity approved Baseline Scheduled Start Date: January 1, 2015
- Activity approved Baseline Scheduled End Date: March 21, 2015
- Budgeted Amount: 10000 EUR
- This activity is linked to Milestone M1 and M2
- M1 (Approved Baseline Scheduled Completion Date) = February 12, 2015
- M2 (Approved Baseline Scheduled Completion Date) = March 21, 2015
- Amount allocated to M1 = 4000 EUR
- Amount allocated to M2 = 6000 EUR
- Time Phase Budget in Period 1 (January 2015) = 0 EUR
- Time Phase Budget in Period 2 (February 2015) = 4000 EUR
- Time Phase Budget in Period 2 (March 2015) = 6000 EUR
If the milestone M1 is completed in February 2015, Earned Value for February = 4000 EUR
If the actual hours incurred in January 2015 is 3300 EUR:
- Hours Variance = 4000 – 3300 = 700 EUR
- Schedule Variance = 4000 – 3875 = 125 EUR