What is the Planned Value in Earned Value Analysis?
Planned work (value) in the project schedule that was supposed to be done at a specif time before the start of the project.
Planned Value specifies how long project work is supposed to take at any given stage in the project schedule and cost estimate. Cost and Schedule Baseline applies to the physical work planned and the budget approved for the execution of the scheduled work.
Planned Value (PV) Formula
The calculation of Planned Value is simple. Take the planned % of the completed work and then multiply it by the project budget and you will get Planned Value.
Planned Value (PV) Example
Project ABC to be completed in 12 months. The budget of the project ABC is 200,000 USD. Six months have passed and the schedule says that 50% of the work should be completed.
What is the project’s Planned Value (PV)?
Given in this question.
Project duration: 12 months
Project cost (BAC): 200,000 USD
Time elapsed: 6 months
Percent complete: 50% (as per the time schedule)
Planned Value is the value of the work that should have been completed so far (as per the time schedule).
In this case, we should have completed 50% of the total work.
Planned Value = 50% of the value of the total work
= 50% of BAC
= 50% of 200,000
Therefore, the project’s Planned Value (PV) is $100,000.
PV is an important tool for calculating Scheduled Performance Index (SPI) and Schedule Variance (SV)