Earned value is a technique for measuring project performance according to both project costs and the schedule. This technique compares the planned cost of the work to the actual cost. While earned value analysis is typically performed for WBS elements, you can also perform an earned value analysis for activities, groups of activities, or one or more projects.
You can define the technique used to calculate the Performance Percent Complete and Estimate to Complete used in the earned value calculation:
Earned Value =Performance % Complete x Budget At Completion (BAC)
To define the default P6 technique for computing earned value calculations:
- Click Administration.
- On the Administration navigation bar, click Application Settings.
- On the Application Settings page, click Earned Value.
To define the technique for computing earned value calculations for a WBS:
- Click Projects.
- On the Projects navigation bar, click Activities.
- On the Activities page:
- Select an activity view that is grouped by WBS, or group by WBS.
- Expand the project and any parent WBS elements.
- Select a WBS to define the technique used for computing earned value.
- Click the Earned Value detail window.
- In the Earned Value detail window:
- In the Technique for computing performance percent complete section, select the technique you want to use for calculating an activity's earned value.
- In the Technique for computing Estimate to Complete (ETC) section, select the technique you want to use for calculating ETC.
- Click Save or Save and Close.