In project management, what does the term 'Planned Value' represent?

Planned Value represents the budgeted amount for the work that is scheduled to be completed at a specific point in time during a project. It is a key component in earned value management, which helps project managers assess cost performance and schedule efficiency. By using Planned Value, project managers can compare the estimated progress of a project against its actual progress and expected outcomes.

This is crucial for project management as it allows for measuring variances in both cost and scheduling, giving insight into whether the project is on track, under budget, or over budget. It serves as a baseline that is used alongside Actual Cost and Earned Value to evaluate project performance. Understanding Planned Value aids project managers in making informed decisions about resource allocation and project adjustments necessary to maintain project objectives.