In Earned Value Management, what does the term 'planned value' refer to?

In Earned Value Management (EVM), 'planned value' refers to the budgeted amount for the work that is scheduled to be completed by a particular time in the project timeline. It represents the value of the work that was planned to have been completed at a specific date, based on the project's baseline budget and schedule.

This concept serves as a foundation for measuring project performance and progress against the planned timeline and budget. By comparing planned value to both earned value (the value of the work actually completed) and actual cost (the costs incurred for the work performed), project managers can assess how well the project is adhering to its schedule and budget, allowing for informed decisions and corrective actions if necessary.

The focus on the budgeted amount for the scheduled work highlights the importance of planning in project management; it emphasizes the need to establish a clear baseline that guides the project team's efforts and expectations. This clarity is crucial for assessing project health and aligning stakeholder expectations.