Earned Value Method

Quick definition: An Earned Value Method (EV Method) is the specific technique chosen in advance to measure how much earned value (BCWP) a Work Package has achieved as work progresses.

Before work begins, each Work Package is assessed and assigned an EV Method that defines exactly how its earned value will be calculated. Tools present these as a single list to choose from. Common choices include Weighted Milestone, Units Complete, Equivalent Units, Earned Standards Complete, an assessed Percent Complete, Level of Effort, and Apportioned Effort, though the available set varies by organization and by tool. The choice depends on the nature of the work — whether its output can be measured objectively, whether progress can only be tracked by the passage of time, or whether it moves in proportion to other, discretely measured work. The classification follows from the method chosen: Work Packages assigned a measurable technique are Discrete Effort, while the others are Level of Effort or Apportioned Effort.

Why it matters

Choosing an appropriate EV Method matters because a poor fit can distort performance data — for example, using Level of Effort for discrete work can mask real schedule problems since LOE always earns value exactly as planned. Locking in the method before work starts also keeps earned value reporting objective, rather than left to subjective mid-project judgment calls.

See also

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