Earned Value Management
Earned Value Management (EVM) is a project management technique used to measure project performance and progress in an objective manner. It integrates measurements of the project management triangle: scope, time, and costs, providing accurate forecasts of project performance problems. EVM allows project managers to assess project health by comparing planned work against actual work completed and associated costs. By calculating the earned value of a project, project managers can monitor progress, identify deviations from the plan, and make necessary adjustments to keep the project on track.
EVM is a powerful tool with many benefits, enabling project managers to map work with costs, reduce unknowns into quantifiable factors, and predict the future of the project with a plus or minus 10% deviation once 20% of the project is completed. It relies on maintaining a time-phased budget baseline and provides a more accurate assessment of project financial status than simple comparisons of budget and actuals.
In summary, Earned Value Management is a comprehensive project management methodology that integrates schedule, costs, and scope to measure project performance and predict the future of the project, allowing project managers to make informed decisions and keep projects on track.
