Using Earned Value Management To Measure Project Performance

Using Earned Value Management To Measure Project Performance

Project management starts with a plan, but project execution is blind without a way to measure progress and performance. Earned value management (EVM) is a technique that project managers use to track the performance of their projects against project baselines. EVM is a quantitative project management technique that evaluates project performance by comparing the progress and budget of work planned to the actual costs. Earned Value Analysis (EVA) is a performance measurement baseline that allows project managers to answer three questions: Where were we, where are we now and where are we going? EVMS is the collection of tools, templates, processes and procedures that an organization uses to do EVM.
The most important details in this text are the two values of Planned Value (PV) and Actual Cost (AC). PV is the planned value of where the project tasks should be at a specific point in the project schedule and cost estimation. AC is the actual cost of the work that's been completed over a specific project period. Earned Value (EV) is the quantification of the value of the work performed up to a certain date in the project. The cumulative earned value is the sum of the budget over the whole project up to the date of the calculation while the current earned value is only carried out for a given period.