Earned value management

Controlling a project is key to the success or failure of the project. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project and to predict the final project duration and cost. It is an easy tool to generate early warning signals to timely detect project problems or to exploit project opportunities. In “Earned Value Management: The three key metrics”, it has been discussed that EVM relies on three key input metrics, known as the planned value (PV), the actual cost (AC) and the earned value (EV). In “Measuring Time: Earned value or earned schedule?”, it has been shown that a fourth method, known as Earned Schedule (ES), works better for measuring the time progress of a project.

Controlling a project is key to the success or failure of the project. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project and to predict the final project duration and cost. It is an easy tool to generate early warning signals to timely detect problems or to exploit project opportunities. An overview of the EVM metrics is given in “Earned Value Management: An overview” and the formulas are summarized in “Earned Value Management: The EVM formulary”.

Controlling a project is key to the success or failure of the project. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project and to predict the final project duration and cost. It is an easy tool to generate early warning signals to timely detect project problems or to exploit project opportunities. An overview of the EVM metrics is given in “Earned Value Management: An overview” and the formulas are summarized in “Earned Value Management: The EVM formulary”.

Controlling a project is key to the success or failure of the project. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project and to predict the final project duration and cost. It is an easy tool to generate early warning signals to timely detect problems or to exploit project opportunities. An overview of the EVM metrics is given in “Earned Value Management: An overview”. In this article, it will be shown that the project baseline schedule plays a crucial role in EVM, and that the planned value curve is a direct translation of this baseline schedule in monetary terms. Project progress, and the measured project performance, is based on the current planned value, actual cost and earned value.

Controlling a project is key to the success or failure of the project. Measuring the project performance along the life of the project is a way to provide early warning signals that can be used as triggers for corrective actions in case the project is in danger. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project. It is a methodology used since the 1960s, when the American Department of Defense proposed a standard method to measure a project's performance. The system relies on a set of often straightforward metrics to measure and evaluate the general health of a project. These metrics serve as early warning signals to timely detect problems or to exploit project opportunities. This article gives a brief overview of the main parameters and indicators used in an EVM approach, in order to give answers to the following questions, as summarized along the following lines:

Controlling a project is key to the success or failure of the project. Measuring the project performance along the life of the project is a way to provide early warning signals that can be used as triggers for corrective action in case the project is in danger. Earned Value Management (EVM) is a well-known technique to control the time and cost performance of a project. It is a methodology used since the 1960s, when the American Department of Defense proposed a standard method to measure a project's performance. The system relies on a set of often straightforward metrics to measure and evaluate the general health of a project.