Earned value allows you to understand whether the performance of the project is making good progress or not. It is a term used to describe products that have been delivered to a project and cannot be taken away. It uses a calculation to multiply what has been delivered by the planned completion, the actual time expended. For example, if a project’s actual costs are under planned costs, what we thought it would be, this may be good news. But you would need to do some further analysis to find out if this was true, because it could be that even though you haven’t spent as much as you thought you would you may not have actually produced anything which is bad news.