Milestone method

The completion value within a work package can be determined using the milestone technique if the work package lasts several months, if defined results (milestones) are available within it, and if these can be valuated with costs. The completion value of the milestone is added to the previous completion value only after the milestone has been completed. An example: A work package with a total completion value of 200 is defined in three milestones with the values M1=50, M2=90 and M3=60. For M1, two periods are assumed for completion, for M2 and M3 one period each. Thus, after two periods, M1 is completed and the earned value of the entire work package is 50. After period three, M2 is completed with the value 90. The cumulative earned value is now 140 (=50+90). When the fourth period is completed with M3=60, the work package is complete, the cumulative earned value 200 (=50+90+60), and thus the final value, is reached. (Source: GPM, Mehrmann/Wirtz)

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