TOPIC: PMB When Using EVM

Question:

Module 7.03 Determining Budget Part 2 (at 19:28) states that "In EVM, Planned Value is the PMB" but in the PMBOK Guide (pg. 254) it states "For projects that use EVM, the cost baseline is referred to as the PMB". Does that mean that Planned Value means the same thing as Cost Baseline in EVM? Can someone help me understand these statements a little better?

Thank you!
- Alexander M.

PMBOK, pg. 261: "The total of the PV (planned value) is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC)."

Hope this helps.

Hello Alexander

Let me explain.

The complete plot of the Planned Value is called as Performance Measurement Baseline or PMP.

Performance refers to cost performance and also schedule performance. As PMP can be used as a refer be to check the project cost performance, it is also referred to as Cost Baseline.

In summary,
Total PV curve = PMP = Cost Baseline

There is one more term - BAC.
BAC or Budget at Completion is the total Planned Value for a project. As we plot cumulative Planned Value, Planned Value at the end of the project is the BAC - the max of planned value. Hope this helps!

You can have a look at this lesson to understand the basics of EVM.