Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re working on a mural. You calculated that it would take 10 days to complete, with each day’s effort costing $50. By the end of day 5, you anticipated to have completed half of the mural, which you estimated would be worth $250.
However, owing to unanticipated rain, you have only finished one-third of the mural by the end of day 5, which would be worth $166 at your budgeted rate.
So, in this situation, the earned value is $166, which indicates the worth of the labor you’ve accomplished up to that point in time.
It assists project managers in understanding how much value (in terms of work or tasks done) they have really accomplished in comparison to what they had intended to achieve at that point of the project. This data assists in determining if the project is on pace, behind schedule, or ahead of schedule in terms of work performed vs the original plan.
