performance measurement

The time and cost performance of a project in progress can be determined by comparing the three key parameters of an earned value management system, known as planned value (PV), actual cost (AC) and earned value (EV). These three metrics can be used to calculate two time variance measures SV and SV(t) and one cost variance CV, as follows: 

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.