What is Earned Value Management? Definition of EVM

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What is Earned Value Management? Definition of EVM
dimah barakat, Member
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 include:
- 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.

EVM "Earned Value Management"
Ghassan Ghanem, Member
Actually, the EVM sounds effective and powerful but i think it does not differ materialy from other projects management and projects progress evaluation and measurement techniques. As the later, provide the same progress measurements, costs control and resource planning methodologies. Therefore, i believe that EVM is an aggregation of an already existing project management and evaluation techniques under one umbrella.

Formulae and Metrics for EVM
Paul D Giammalvo, Member
Gentlemen, there is much more to EVM than what Dimah put forward. Here you can download the DAU Gold Card, which not only contains all the acronyms, but also the formulae necessary to do the calculations.
And if you go HERE, Practical Look at How Private Sector Entrepreneurial Contractors Use Earned Value, you can see a paper explaining how to use these these formula in a simple and practical way.

EVM versus other Projects Management, Progress Evaluation and Measurement Techniques
Michael Lueders, Member
@Ghassan Ghanem: Can you please identify the "already existing project management and evaluation techniques" you are referring to?


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