PMGT5889 Chap.9 Earned Value, Cost and Schedule Performance

Earned Value, Cost and Schedule Performance

Define planned value

Earned Value, Cost and Schedule Performance frames a decision through planned value, earned value and actual cost.

The objective is to calculate variances and indices, then explain the baseline relationship that each comparison measures, so the chapter should be read as a chain from problem definition to evidence, option comparison and accountable action.

Start with planned value and name the decision owner, affected stakeholders and time horizon.

The same planned value fact can matter differently across those positions, so the opening frame determines which evidence is relevant.

Use earned value to explain how the present condition produces an opportunity, cost or risk. A strong earned value mechanism states what changes, for whom and through which organisational, market or institutional process.

Apply actual cost when comparing options.

Keep the actual cost criteria distinct, test trade-offs and ask which assumption drives the recommendation. A score or matrix helps only when its criteria are justified by the case.

Trace earned value

For the application — calculate variances and indices, then explain the baseline relationship that each comparison measures — finish with an actor, action, rationale and review trigger.

This turns the actual cost analysis into a recommendation while keeping the decision open to new evidence.

Build a decision ledger. Separate the current condition, the stakeholder affected, the evidence supporting planned value, the mechanism represented by earned value and the criterion supplied by actual cost.

If a actual cost recommendation cannot point back to one of those entries, it is probably preference dressed as analysis rather than a consequence of the case.

Compare at least two feasible options against the same criteria. State who benefits under actual cost, who bears cost or risk, what capability implementation requires and what evidence would reveal failure.

This comparison is essential when students need to calculate variances and indices, then explain the baseline relationship that each comparison measures, because an attractive option is not defensible until its trade-offs are visible.

Rehearse the PMGT5889 planned value response as a short briefing: one sentence for the decision, two for the evidence and mechanism, one for the alternative and one for the qualified recommendation.

Then expand only the earned value move that needs more support. This protects the argument structure under a strict word or time limit.

Test with actual cost

A complete response should make the task visible before the detail: identify what must be decided, define the relevant terms, connect the evidence to earned value, and use actual cost to test the result.

The final sentence about actual cost should answer the question actually asked rather than merely repeat the topic.

The controlling limit is specific: Earned-value schedule indicators describe budgeted progress and may not equal elapsed-time delay.

Keep that actual cost limit beside the worked example, because it separates a careful PMGT5889 answer from one that sounds confident but claims more than the task or evidence supports.

For revision, retrieve planned value, earned value and actual cost without notes, explain their relationship aloud, then complete a changed version of the application: calculate variances and indices, then explain the baseline relationship that each comparison measures.

Record the first failed earned value reasoning move and repair it before attempting another case.

What this chapter covers

• 01

  planned value

• 02

  earned value

• 03

  actual cost

• 04

  Applying planned value

• 05

  Limits of earned value and actual cost

AskSia practice: apply Earned Value, Cost and Schedule Performance

Key terms

planned value

The authorised budget assigned to work scheduled to be completed by the status date. Use this definition when the task is to calculate variances and indices, then explain the baseline relationship that each comparison measures.

earned value

The authorised budget assigned to work actually completed by the status date under the progress rule. Use this definition when the task is to calculate variances and indices, then explain the baseline relationship that each comparison measures.

actual cost

The realised cost recorded for the work performed by the status date. Use this definition when the task is to calculate variances and indices, then explain the baseline relationship that each comparison measures.

Earned Value, Cost and Schedule Performance FAQ

Assessment move

Reconstruct the relationship among planned value, earned value and actual cost; complete the chapter application without notes; then test the result against this limit: Earned-value schedule indicators describe budgeted progress and may not equal elapsed-time delay.

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