Planned Value (PV)
DE: Planwert (PV)
The authorized budget assigned to scheduled work.
Detailed Explanation
Planned Value is the authorized budget assigned to scheduled work to be accomplished for an activity or WBS component. It represents how much work should have been done by a specific point in time according to the project plan.
PV is time-phased — it changes based on where you are in the project. At project start, PV is zero. At project end, PV equals the Budget at Completion (BAC). At any point in between, PV reflects the cumulative planned spending up to that date according to the cost baseline.
PV is one of three fundamental EVM values alongside Earned Value (EV) and Actual Cost (AC). It serves as the benchmark against which actual performance (EV and AC) is measured. Without PV, there is no reference for schedule or cost variance.
Key Points
- Authorized budget for work planned to be completed by now
- Time-phased: changes as the project progresses
- PV at project start = 0; at end = BAC (Budget at Completion)
- Derived from the cost baseline (time-phased budget)
- One of three fundamental EVM values (PV, EV, AC)
- Benchmark for schedule and cost variance analysis
Practical Example
A EUR 1.2M, 12-month project: PV at month 3 = EUR 250K, PV at month 6 = EUR 620K, PV at month 12 = EUR 1.2M (BAC). At month 6, the PM compares: EV = EUR 580K, AC = EUR 640K. Schedule variance = EV - PV = -EUR 40K (behind). Cost variance = EV - AC = -EUR 60K (over budget).
Tips for Learning and Applying
Derive PV directly from the approved cost baseline
Ensure PV is time-phased accurately — front-loaded projects have different PV curves than back-loaded ones
Remember: PV = BAC at project completion
Use PV as the baseline for both SPI and schedule variance calculations
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