How do you choose the right earned value technique for different types of project activities?

1 Fixed Formula Method

The fixed formula method is the simplest and most common earned value technique. It assigns a fixed percentage of earned value to each activity based on its start and finish status. For example, you can use the 0/100 rule, which means that an activity earns 0% of its value until it is completed, and 100% when it is done. Or you can use the 50/50 rule, which means that an activity earns 50% of its value when it starts, and another 50% when it finishes. The fixed formula method is suitable for short, discrete, and well-defined activities that have clear start and end points.

2 Weighted Milestone Method

The weighted milestone method is a variation of the fixed formula method. It divides an activity into several milestones, each with a specific weight or percentage of earned value. For example, you can assign 20% of the value to the design milestone, 40% to the development milestone, and 40% to the testing milestone. The weighted milestone method is useful for longer, complex, and iterative activities that have multiple deliverables or checkpoints.

3 Percent Complete Method

The percent complete method is a more subjective and flexible earned value technique. It relies on the judgment of the project team or the stakeholders to estimate the percentage of completion of an activity based on the work done or the results achieved. For example, you can use the technical performance measure, which evaluates the quality or functionality of the output against predefined criteria. Or you can use the level of effort measure, which assesses the amount of work or resources spent on the activity. The percent complete method is appropriate for creative, adaptive, and collaborative activities that have vague or changing scope or requirements.

4 Apportioned Effort Method

The apportioned effort method is a special earned value technique that applies to activities that are proportional or dependent on other activities. It allocates a fraction of the earned value of the main activity to the supporting activity based on their relative effort or duration. For example, if the main activity is building a house and the supporting activity is painting the walls, you can assign 10% of the earned value of the house to the painting activity. The apportioned effort method is relevant for ancillary, concurrent, or repetitive activities that have a fixed relationship with the main activity.

5 Earned Value Technique Calculator

Choosing the right earned value technique for your project activities can be challenging and time-consuming. That's why you can use an earned value technique calculator to help you select the best option based on your project characteristics, such as the type, size, duration, complexity, and uncertainty of your activities. An earned value technique calculator can also help you calculate the earned value, cost and schedule variances, and performance indices of your activities using the chosen technique. You can find various earned value technique calculators online or create your own using spreadsheet software.

6 Here’s what else to consider

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