Earned value management Coursework Example | Topics and Well Written Essays - 500 words

Earned valuate management - Course course ExampleWork should be broken raft into small elements that atomic number 18 appropriate for planning, scheduling, budgeting, progress measuring, live accounting, and management control.According to Paul & Young (2006), acquire value management is aimed at measuring the progress of an exertion against a clear baseline. There are three main values calculated for an application in earned value management. These include the think value (PV), the veritable be (AC) and the earned value (EV).To start with, the planned value is referred to as the budgeted cost of the projects work scheduled. The portion of the cost approved is used for a given activity within a specified period of time. Suppose there is an activity that entails installing of a raw server after purchasing. If for instance, it will take one week according to the plan and cost $30,000 for the hardware, mash hours and the software that is involved. The planned value in this c ase will therefore be $30,000 for that week.The actual cost (AC) on the other hand is referred to as the actual cost of work performed. According to Ray (2006), actual cost precisely refers to the total costs incurred in completing the entire work on an activity for a given period of time. This cost ought to correspond to the budget for the planned value in term of equipment, material, labor, and the indirect costs. If an activity of installing electricity in a business building costs $80,000 after its completion then the actual cost is $80,000.The earned value (EV) is referred to as the budget cost of work performed (Gary 2001). This is the value of a project that is actually completed. Lets say for example, a project has a budget cost of $200, and by a given time it is 40 percent finished. The earned value is therefore $80 but scheduled value at that point is $100. This