Planned Value (PV) is the authorized budget assigned to scheduled work at a specific point in time. It represents how much of the budget should have been spent, according to the project schedule, regardless of actual progress or performance.
PV is a foundational element of earned value management (EVM) and is used to evaluate cost and schedule performance.
Key Characteristics
- Time-Based Budget Reference – Tied directly to the schedule
- Baseline-Driven – Calculated from the performance measurement baseline
- Excludes Actual Progress – Independent of work performed or cost incurred
- Used in Variance Calculations – Compared with EV and AC for performance insight
Example Scenarios
- By week 6, a project is planned to have completed $200,000 worth of work—this is its PV
- A monthly PV curve helps track budgeted progress against actual performance
- PV is used to determine if the project is on pace financially and temporally
Why Planned Value Matters
- Establishes a Baseline – Sets the reference for comparing actual and earned value
- Supports Performance Metrics – Enables calculation of schedule variance and SPI
- Improves Forecasting – Allows early detection of slippage or overrun
- Drives Cost Control – Informs decision-making around resource use and pacing
See also: Actual Cost (AC), Earned Value (EV), Budget at Completion (BAC), Estimate at Completion (EAC), Estimate to Complete (ETC).