Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re constructing a treehouse. You expected to complete the frame by the end of the first week, and the cost was projected to be $500. Earned value measurement shows you how much labor and value you’ve earned up to that point in time.
Assume the following:
– Planned frame cost: $500 – By the conclusion of the first week, you had only constructed half of the frame, which you estimated would cost $250.
So, at the end of the week, you were intended to have finished the entire frame, which was worth at $500. However, you only completed half of the task, which is worth $250.
This means that at the conclusion of the week, your achieved value (the value of the labor performed) is $250, whereas your planned value (the value you intended to earn) is $500.
By comparing these statistics, project managers may determine if they are on track, behind time, or exceeding expectations. It aids in knowing how well the project is moving in terms of both work performed and money expended vs the original budget.
