Thanks for your response and indeed your reference and clarity.
You have also raised the question that who pays the difference between Earned value and the ACWP. Dont leave that question hanging, it requires a "soft landing"
Earned Value is simply the proportion of the budget allocated to a task that can be claimed due to the progress made on the task i.e. % Complete * Budget.
Actual cost of work performed (ACWP) represents the costs associated with carrying out the work.
As such the two figures are independent of each other and aid as a means of comparing the actual cost to the value obtained from the work undertaken. i.e if your actual costs to undertake a task amount to £ 1, 000, but the value obtained from your progress is only £ 800 (the amount your client is going to pay you), who is liable for the difference ?. A very simple example, you can derive all manner of statistics, but I prefer to focus on the core issue.
For an excellent paper on the subject by Paul Harris, visit www.eh.com.au
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The best definition I ever heard was that effectively thats your bonus/pay rise blown.
Dear Steve,
Thanks for your response and indeed your reference and clarity.
You have also raised the question that who pays the difference between Earned value and the ACWP. Dont leave that question hanging, it requires a "soft landing"
Thank again.
Bakundi
Earned Value is simply the proportion of the budget allocated to a task that can be claimed due to the progress made on the task i.e. % Complete * Budget.
Actual cost of work performed (ACWP) represents the costs associated with carrying out the work.
As such the two figures are independent of each other and aid as a means of comparing the actual cost to the value obtained from the work undertaken. i.e if your actual costs to undertake a task amount to £ 1, 000, but the value obtained from your progress is only £ 800 (the amount your client is going to pay you), who is liable for the difference ?. A very simple example, you can derive all manner of statistics, but I prefer to focus on the core issue.
For an excellent paper on the subject by Paul Harris, visit www.eh.com.au