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 in Dec. 1967.
EVM is calculated by using formulas to determine variances related to time and cost for progress analysis purposes and forecasting.
Some major EVM acronyms
- AC: Actual Cost
- PV: Planned Value
- CV: Cost Variance
- SV: Schedule Variance
- CPI: Cost Performance Index
- SPI: Schedule Performance Index
- ETC: Estimate to Complete
- EAC: Estimate at Completion
- BAC: Budget at Completion
- VAC: Variance at Completion
*regardless of the project industry or field.