Earned Value Management (EVM) is a project management technique for measuring project performance and progress. In a single integrated system, Earned Value Management (EVM) is able to provide accurate forecasts of project performance problems, which is an important contribution for good project performance. It is therefore considered a Performance Management approach
What is Performance Management?
Performance management is the integrating process of planning, managing and controlling project performance. Measures of progress should be articulated in terms of cost, schedule and technical performance. It includes, but is not limited to, techniques and metrics for expressing and evaluating progress within the three (cost, schedule and technical) baselines of a project.
Earned Value Management
- Earned Value Management Systems = integrated project management approach
- It is the management process that integrates work scope with schedule and budget resources
- A performance management baseline is established
- Work progress is measured as “earned value” – a yardstick
- Significant schedule and cost variances are isolated and reported to the project manager for corrective action
- Produces a set of metrics that provide accurate cost and schedule amounts at completion before the project is 20% complete
- EVMS is not a specific system or tool set, but rather, a set of guidelines that guide a company’s management control system
- Visit the Department of Defense Earned Value Management Website to see a basic example of Earned Value Management and are documented as a standard set of guidelines EIA 748-98
- Commercial EVMS best business practices are documented in PMI Global Standard