Earned Value Management
(EVM)

Knowledge Center

   

Measuring the effectiveness of Program Management. Explanation of Earned Value Management. EVM.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources

Print

What is Earned Value Management? Definition

Earned Value Management is an integrated program measurement and management technique that integrates

  • technical performance requirements,
  • resource planning with schedules,
  • while taking risk into consideration.

In other words, EVM is a management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned, budgeted, and scheduled in time-phased ''planned value'' increments, constituting a cost and schedule measurement baseline.


Objectives of EVM

There are two major objectives of an Earned Value Management system:

  1. to encourage contractors to use effective internal cost and schedule management control systems; and
  2. to permit the customer to be able to rely on timely data produced by those systems for determining product-oriented contract status.

The major objectives of applying EVM to a contract are:

  • To encourage contractors to use effective internal technical, cost and schedule management control systems, and
  • To permit the customer to rely on timely data produced by those systems for better management insight.
  • This data is in turn used for determining product-oriented contract status, and
  • Projecting future performance based on trends to date.
  • In addition, Earned Value Management allows better and more effective management decision making to minimize adverse impacts to the project.

Benefits of Earned Value Management

Earned Value Management provides an objective measurement of how much work has been accomplished on a project. Using the EVM process, the management team can readily compare how much work has actually been completed against the amount of work planned to be accomplished. All work is planned, budgeted, and scheduled in time-phased "planned value" increments, constituting a performance measurement baseline.


Earned Value Management Forum
  EV Methods X%/Y%
I am in a disagreement with a coworker regarding Earned Value Methods X%/Y%. They contend that by assigning an Earned Value method of (for example) 50/50, your BCWS should automatically be adjusted to have 50% of your budget allocated in month 1 and ...
     
 
  EVM Baseline Cost When Moving a Task to Another Calendar Year
If I process a Baseline Change Request (BCR) moving a task’s period of performance from one calendar year to the next, there is a labor rate upper (escalation). My question is "do I maintain the hours and have a baseline cost upper or maintain the ba...
     
 
  Survey on Earned Value Analysis Management - Best Practices
Hi All, I am looking for people with the knowledge about earned value analysis & management to complete a 5 minutes survey for the purpose of my dissertation research. No personal details are required and the results are – of course – stricly confide...
     
 
  EVM Problem: Project Scope Change
One of the problems I have encountered with earned value is project scope change or more specifically creep.
It is difficult to account for the completion of work when the parameters are not aligned with contractual obligations. <...
     
 
  Earned Value Management is Like a Speedometer
Many projects are completed behind schedule and over budget because there are no proper monitoring and controlling steps taken.
If we consider a project as a "journey", the methodology as the "road", the resource as a "car", the project m...
     
 
  Project Management Finance
Can anybody tell me what are the financial techniques used for project appraisals?...
     
 
  Use of control accounts in the WBS
I am struggling with how to apply the use of 'control accounts' (cost accounts) in my WBS. I understand the concept but lack good examples of 'how' to do it - what do I call the CAs, how do I know in the WBS where they are needed, what do I roll up ...
     
 
  EVM in Fixed Price Software Projects
We have been using Earned value based tracking for our Fixed Price Software Projects. It is very good method to plan future actions based on percentage completion - complex procedure, but need to be customized based on data collected - In software it...
     
 
  When is an Asset over / under cost?
Am wondering if anyone knows of any EVM ISO Procedure written with regard to what steps you take to know when an asset is over or under cost (and at what percentage?)...
     
 
  What is Earned Value Management? Definition of EVM
According to PMI, in projects*, EVM is a management methodology for integrating scope, schedule and resources for objectively measuring project performance & progress against the baseline.
The criteria were first released by the U.S. DoD ...
     
 
  EVM Implementation in Construction
I am interested to know about EVM implementation in a construction company. Projects like a group of buildings, towers or town houses, etc....
     
 

Earned Value Management Special Interest Group


Special Interest Group

Earned Value Management Education & Events


Find Trainings, Seminars and Events


Best Practices - Earned Value Management Premium

Expert Tips - Earned Value Management Premium
 

Generic Steps in Earned Value Management

1. Identify and organize all project steps: Identify all tasks that need to be accomplished and breakdown and organize the tasks into sub-groups. This...
Usage (application): Project Management, EVM Implementation
 
 
 

Limitations of Earned Value Management

Following limitations of EVM can be distinguished:
- EVM does not measure project quality and customer satisfaction.
- The use of EVM assume...
Usage (application): Project Management, EVM Implementation
 
 
 

Earned Value Management and Prompt Payment Clauses

IF Earned Value Management is combined with "Prompt Payment" clauses in the contract (which it should) then it enhances a contractors cash flows and s...
Usage (application): EVM Contracting
 
 
 

Recommendations for EVM Implementation

Based on a study, Kim, Wells and Duffey developed an implementation framework for EVM in order to implement EVM more efficiently, thereby developing <...
Usage (application): Critical Factors for EVM, EVM Best Practices
 
 
 

Earned Value Management System

Private companies use some form of business planning and control systems for management purposes. These planning and control systems have been tailor...
Usage (application): Standardization
 
 

Resources - Earned Value Management Premium

Calculating the Basic Elements in EVM

Presentation that gives a short introduction into Earned Value Management (EVM), and focuses on its "basic elements" and the calculation of these elem...
Usage (application): Earned Value Management
 

DAU Gold Card

This is a one page summary produced by the Defense Acquisition University that summarizes the most common formulae associated with Earned Value Manage...
Usage (application): EVM Formulae
 
 

News

Earned Value Management
     
 

News

Evm Value
     
 

Videos

Earned Value Management
     
 

Videos

Evm Value
     
 

Presentations

Earned Value Management
     
 

Presentations

Evm Value
     
 

More

Earned Value Management
     
 

More

Evm Value
     

Compare EVM with: Cost-benefit Analysis  |  DCF  |  Net Present Value  |  Value Engineering  |  Gantt Chart


Return to Management Hub: Program & Project Management


More Management Methods, Models and Theory

Special Interest Group Leader

You here


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.0 - Last updated: 27-7-2016. All names tm by their owners.