University of Phoenix
In this paper, I will be comparing and contrasting the three Earned Value Management performance measurements: Planned Value, Earned Value and Actual Cost. I will also be discussing the importance of project performance measurement. Planned Value
Planned value is defined as, “the value of the work planned for a certain date. It is the entire budget for work to be completed at the planned date. In Scrum terminology: it is the sum of the estimated feature sizes for all the features up until the planned date” (Martinig & Associates, 2009). An example of a planned value is when you start a project and have an idea as to when the timelines should fall into place. These estimates are your planned estimates or values. These values can be changed along the way, but are used in the beginning to baseline your actual values. This gives the team a guideline so that they can manage their workload. The planned value of a project also is taken into consideration for those who need extra time on one task. At my company, the Project Manager will use the Gantt chart to map out the timelines of the project between one year or less. Each project task is then given a projected timeline that is used during the study. Earned Value
Earned value is defined as,“the value of work completed at the same date as used for PV. Earned Value is not synonymous with actual cost, nor does the term refer to business value. Earned Value refers to technical performance (work) "earned" against the baseline or work planned. In Scrum terminology: it is the sum of the estimated story points for the features up until the calculation date” (Martinig & Associates, 2009). An example of earned value is the timelines that are actually the time that it took to finish a task. For example, you may have estimated that it will take six months to complete a task, but you find that with all of...