With the earned value equations in hand, we can now turn to applying them to project situations. We must first establish a ground rule for taking credit for accomplishment. For the moment, the rule is the simplest possible: 100% earned value is given for 100% task completion; else, no credit is given for a partial accomplishment. This is the rule we applied in the bicycle example.

Look now at Figure 6-1. The planned value for the two tasks, A and B, is \$50,000. Only Task A is completed, so under the "all-or-nothing" credit rule, no EV is claimed for Task B. Using the equations in Table 6-4, we calculate the report as shown in Figure 6-1. We see that we are \$30,000 behind schedule. This means that \$30,000 of work planned for the period was not accomplished and must be done at a later time. We are \$10,000 over cost, having worked on Task B and claimed no credit and finished Task A for an unspecified cost for a total actual cost of \$30,000.

Planned vaJus:\$20K

Planned Value S30K

Evaluaban Pe-nod

TaEik A

TiEfcB

Tesk A: Completed, value claiiwíf S20K

■hj: completed: rw value credited

Toral platins^ VeiJuo- \$5CK

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PISrtnÉd Valué, PV: Actual Cost. AC Edrrad Valué-, EV: Cosl Variance: Schedule variance. Figure 6-1: Two-Task One-Period Example.

S5QK S30K S20K

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Now in Figure 6-2, we see that we complete Task B, claim \$30,000 of earned value, and calculate the variances for Period 2. Of course since there was no planned value and a big earned value, we get a positive schedule variance. Overall from the two periods combined, we get the following performance record for Tasks A and B:

Schedule variance at the end of Period 2: EV - PV = \$0

Cost variance at the end of Period 2: EV - AC = -\$10,000

Planned 'or Panod 1

PiriOd t

Pijrinod lor Period 1

Evaluanon Period 3

Actually in Ptjriod 2

Task A: G&nplgfad in Ponod ■ V.ilun Cliiinwil SMK in P(*kkJ I

Task R - ComtiKod Poriod 2 Villi.ir CUuned \$30K in Period 2

ftflfKHt Tj

Planned Vakw. PV Aciual Cos-i. AO: Earned VaJue, EV: CMt Variance: Schedule variance 