PMI Agile Certified Practitioner (ACP) Practice Exam

What is 'Planned Value' in project management?

1. The actual value earned at a given point

2. The amount of value the project should have earned

3. The projected cost of the entire project

4. The estimated time to complete the project

The correct answer is: The amount of value the project should have earned

Planned Value (PV) in project management refers specifically to the amount of value that a project is expected to have earned at a certain point in time, based on the project’s baseline and the planned schedule. It is a key concept in Earned Value Management (EVM) and serves as a benchmark for assessing project performance. In this context, Planned Value reflects the cumulative budget that should have been spent up to a certain date if the project were proceeding exactly according to the planned schedule. This metric allows project managers to compare what was planned versus what has actually been achieved. By looking at the Planned Value, project managers can gain insights into whether the project is on track, ahead, or behind schedule. The other options do not accurately describe Planned Value. The actual value earned at a given point refers to Earned Value (accrued progress), while the projected cost of the entire project would relate more to the Total Budget or Estimate at Completion. The estimated time to complete the project pertains to scheduling aspects, not the value associated with the completion of work. Hence, identifying Planned Value as the amount of value the project should have earned captures the essence of what this term signifies within project management methodologies.