EARNED VALUE Meaning and
Definition
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Earned value is a project management technique used to assess the progress and performance of a project. It measures the value of work completed at a given point in time and compares it to the planned value and the actual cost incurred. By analyzing these values, project managers can determine whether the project is on track, ahead, or behind schedule, and if it is within or over budget.
The earned value is calculated by multiplying the percentage of work completed by the planned total budget for that portion of the project. This provides an objective measurement of the value gained from the effort expended so far. It allows project managers to evaluate if the project is delivering the expected value for the resources and time invested.
By comparing the earned value to the planned value, project managers can determine if the project is progressing as planned. If the earned value is lower than the planned value, it indicates that less work has been accomplished than anticipated. This signifies that the project is behind schedule. On the other hand, if the earned value is higher than the planned value, it suggests that more work has been completed than expected, indicating that the project is ahead of schedule.
Additionally, earned value can be used to assess cost performance by comparing the earned value to the actual cost incurred. If the earned value is higher than the actual cost, it indicates that the project is performing better than expected in terms of cost. Conversely, if the earned value is lower than the actual cost, it implies that the project is operating over budget.
Earned value analysis provides project managers with a valuable insight into the performance of the project, allowing them to make informed decisions on resource allocation, schedule adjustments, and cost management.
Common Misspellings for EARNED VALUE
- warned value
- sarned value
- darned value
- rarned value
- 4arned value
- 3arned value
- ezrned value
- esrned value
- ewrned value
- eqrned value
- eaened value
- eadned value
- eafned value
- eatned value
- ea5ned value
- ea4ned value
- earbed value
- earmed value
- earjed value
- earhed value
Etymology of EARNED VALUE
The word "earned value" has a straightforward etymology.
The term "earned" comes from the verb "to earn", which ultimately derives from the Old English word "earnian", meaning "to merit or deserve". The word gradually evolved through Middle English, retaining its fundamental meaning of obtaining or deserving something in return for labor or effort.
"Value", on the other hand, stems from the Latin noun "valor", meaning "worth" or "price". It entered English via Old French as "value", retaining its core concept of the relative importance or worth of something.
When combined, "earned value" refers to the value or worth that one has obtained or deserved through their efforts or work. In particular, it is often used in the context of project management or business to measure the progress or achievement of tasks or deliverables based on the work completed.
