| # 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. 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: 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. Percentage Completed 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 scheduled work (BCWS) and work performed (BCWP). 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. Related topics To use a time-phased budget |