Earned value management (EVM) is vital for ensuring project performance and helps measure the performance and how well the project is meeting scope, time and cost goals. You will select three Earned Value formulas. You will explain them, given an example of the formula and explain why the formula is important to PM. You may use images to help explain. Your response should be no less than 450 words.

answer is given below

Explanation:

The state of the project can be determined with the help of earned value, and this is achieved with the help of both time and schedule.  

Earned value principles are important to the project manager because he can determine whether the project is ahead of schedule or within the proposed budget.

Schematic Price (PV)

This is also known as the Budget Schedule of Work Scheduled (BCWS). This can be seen as the sum of all the activities that need to be eliminated in the context of the work budget. This is mainly derived from the project budget.

PV = Percentage completed (planned) × Work budget    1

For example, if you were to work today, February 12, and February 10 to February 20, it would require 20% completion. If the working budget is $ 10,000, PV = 20% x $ 10,000 = $ 2,000.

Schedule Diversity (SV)

In this formula, first, we determine the calculated output in the value analysis. A price is received by the project manager that highlights the work that needs to be completed or determined.

SV = EV - PV    2

If the SV is negative, the work schedule is behind.

If the SV is zero, the working time is

If the schedule is SV positive, the work is ahead of schedule.

In our example, SV = $ 2,500 - $ 2,000 = $ 500. This work is done ahead of schedule.

Cost Difference (CV)

The schedule is equal to the difference. It describes the project completion status to the project manager in terms of budget, i.e. whether the project is within budget.

CV = EV - AC     3

CV If CV is negative, work budget is exceeded

when CV is zero, the project will be within budget

when CV is positive, the project is subject to budget

CV = $ 2,500 - $ 3,500 = - $ 1,000. Work exceeds budget. The work may be ahead of schedule but may be over budget. Much more money was spent on the work than is currently completed.