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Is earned value related to the milestones of the project?

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How can earned value relate to the milestones of the project (e.g. percentage complete)?

A detailed answer to my question from an experienced PM would be very helpful.
asked 7 years ago by anonymous edited 7 years ago by MaplePM

1 Answer

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There are ~6 methods of calculating the physical percent complete which is part of the formula to calculate Earned Value (BCWP or EV) depending on the source.  Using AACE's Skills and Knowledge of Cost Engineering, 5th Edition, the 6 methods are:
1) Units in Place or Units Completed
2) Incremental Milestones
3) Start/Finish
4) Supervisors Opinion (Expert Judgment)
5) Cost Ratio Method
6) Weighted or Equivalent Units

Once you have calculated the PHYSICAL PERCENT COMPLETE, then you multiply that times the budgeted value for each activity or WBS element, yielding the earned value for that activity/WBS element.

To summarize:
Physical % complete X BCWS = BCWP  

OR for those who drink PMI's Kool Aid:

Physical % complete X PV = EV

Hope this answers your question sufficiently?  If you are serious about learning about applied earned value management, my recommendation is to purchase Gary Humphrey's  "Project Management Using Earned Value? https://humphreys-assoc.com/product_view.php?product_id=3 It is, IMPO, the best single book ever written on practical APPLIED project management.

BR,
Dr. PDG, Jakarta, Indonesia
http://www.build-project-management-competency.com
answered 7 years ago by anonymous

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