Earned Value Management

Earned Value Management

Measuring project performance using earned value analysis and key performance indicators. Earned Value Management is a project management technique that integrates cost, schedule, and scope metrics to measure project performance and progress. EVM is widely used to provide objective data on project performance, allowing project managers to identify issues early and take corrective actions.

Understanding Earned Value Analysis

Earned Value Analysis is a critical component of EVM, offering quantitative data on project performance by comparing planned and actual accomplishments. EVA helps project managers determine if a project is on track regarding time and budget.

Key Terms in Earned Value Analysis

• Planned Value : The budgeted cost for scheduled work at a given point in time. Planned Value represents the amount of work expected to be completed based on the project schedule.
• Actual Cost : The actual expense incurred for work completed at a specific point. Actual Cost is used to assess how well project spending aligns with the budget.
• Earned Value : The budgeted value of work actually performed. Earned Value enables comparison of planned work with the actual work completed, giving insights into project performance.