Earned Value Concept

There are some very good articles on Paul Harris’s website on the subject. Also recommended reading would be Paul’s book on applying P3.

Hi there,

Here is how P3 calculate the Earned Value:

The Budget Summary form displays the planned value (BCWS) and earned value (BCWP). In earned value analysis, you can
compare BCWP to the BCWS and to the actual to date (ACWP).
The planned value (BCWS) reflects the work that should have been finished as of the data date according to the target plan; earned value (BCWP) measures the value of the work actually accomplished as of the data date.

The difference between these two figures is called schedule variance (favorable if the earned value exceeds the planned value).

The difference between ACWP and earned value is called cost variance (favorable if the earned value exceeds the actual cost).

P3 calculates earned value as the product of the budget and the resource percent complete. P3 uses schedule percent
complete (PCT) if the resource percent complete is blank.

P3 calculates the planned value as the product of the budget and the percent complete that the target should be on the current data date.
Choose Tools, Options, Earned Value and choose whether P3 uses the budget from the current schedule or the Target 1
schedule to calculate earned value and planned value.

Note P3 lets you examine and compare costs and quantities. Planned value is the budgeted cost of work scheduled (BCWS); BQWS is the budgeted quantity of work scheduled. Likewise, compare BCWP and ACWP with BQWP and AQWP.