Earned Value Management
(EVM)

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

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:

to encourage contractors to use effective internal cost and schedule management control systems; and
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

Recent User Comments

    			 
  			   Mr. Akbar 123 - Dubai - UAE
  	       
  		     EVM Implementation?
  	  		 "I am interested to know about EVM implementation in a construction company. Projects like a group of  buildings , towers or town houses, etc."
  			   
  	  		 5