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<ManualTopic ID="/baanerp/tp/onlinemanual/000159" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To use an earned value method</Title>
		<Keyword><Level1>milestone</Level1>
		</Keyword>
		<Keyword><Level1>start and end percent</Level1>
		</Keyword>
		<Keyword><Level1>apportioned</Level1>
		</Keyword>
		<Keyword><Level1>level of effort</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>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.</Paragraph>
		<List><ListIntro>There are a number of different ways in which you can use the earned value method to determine how budget amounts are to be released:</ListIntro>
			<ListItem>Milestone.</ListItem>
			<ListItem>Start and end percent.</ListItem>
			<ListItem>Percentage completed.</ListItem>
			<ListItem>Level of effort.</ListItem>
			<ListItem>Apportioned.</ListItem>
		</List>
		<Paragraph>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.</Paragraph>
		<Paragraph>Start and end percent 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.</Paragraph>
		<Paragraph>Percentage completed Budget amounts are released in proportion to the percentage progress of the project.</Paragraph>
		<Paragraph>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 scheduled work (BCWS) and work performed (BCWP).</Paragraph>
		<Paragraph>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 linked activity.</Paragraph>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tp/onlinemanual/000068" role="manual">To use a time-phased budget</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
