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Why can spending less than planned still be bad news?

A project may spend less than its budget so far because it has completed less work than expected. Earned-value analysis compares planned work, completed work expressed at its budgeted value, and actual spending. That separates two questions that a spending total alone cannot answer.

5–7 min

Questions you could explore

  • What would you need to know before calling a low spend good performance?
  • How could lower activity produce a favorable-looking spending variance without better efficiency?

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  • NASAEVM Tutorial

    NASA’s tutorial explains planned value, earned value, actual cost, and the interpretation of cost and schedule variances.

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