Planned Value (PV)
Planned Value (PV) is the authorized budget assigned to scheduled work, representing the value of work planned to be completed by a given point in time.
Explanation
Planned Value, formerly known as Budgeted Cost of Work Scheduled (BCWS), represents the approved budget allocated for the work scheduled to be completed by a specific date. It is the baseline against which earned value is compared to determine schedule performance.
PV is a cumulative value that increases over time as more work is scheduled. At the end of the project, the total PV equals the Budget at Completion (BAC), which is the total planned value for all work on the project. PV is always based on the approved cost baseline.
For example, if a project has a BAC of $100,000 and is planned to be 50% complete at the end of month 3, then the PV at month 3 is $50,000. PV is determined before the work is performed and represents what should have been accomplished according to the plan.
Key Points
- •Formerly known as Budgeted Cost of Work Scheduled (BCWS)
- •Represents the authorized budget for scheduled work at a point in time
- •Total PV at project end equals Budget at Completion (BAC)
- •Determined from the cost baseline before work is performed
Exam Tip
PV answers: What was the budget for the work that was supposed to be done by now? Total PV at project completion equals BAC.
Frequently Asked Questions
Related Topics
Earned Value (EV)
Earned Value (EV) is the measure of work performed expressed in terms of the budget authorized for that work.
Actual Cost (AC)
Actual Cost (AC) is the realized cost incurred for the work performed on an activity during a specific time period.
Schedule Variance (SV)
Schedule Variance (SV) is an EVM metric that measures schedule performance as the difference between earned value and planned value: SV = EV - PV.
Earned Value Management (EVM)
Earned Value Management (EVM) is a methodology that integrates scope, schedule, and cost data to assess project performance and progress objectively.
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