Earned Value Management
(EVM)

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Summary

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.


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Forum about Earned Value Management.


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 fut (...)
8
 
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 i (...)
8
 
Adjusting the BCWS in Earned Value Methods X%/Y%
I am in a disagreement with a coworker regarding Earned Value Methods X%/Y%. They contend that by assigning an Earned Va (...)
5
 
1 comments
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 (...)
5
 
2 comments
Earned Value Management (EVM) in Agile Projects
Many professionals want to adapt EVM to Agile projects. It's easy: in order to calculate EVM values, you need four basic (...)
4
 
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, t (...)
4
 
1 comments
🔥 NEW Tips to Improve the Productivity in your Project
I would like to share a number of ways how we can increase the productivity of our project. It is no secret that some pe (...)
3
 
Project Portfolio Scorecard in EVM
Let us suppose you are managing a portfolio of projects in an IT department of a Bank. Many IT departments like this hav (...)
3
 
Project Management Finance
Can anybody tell me what are the financial techniques used for project appraisals? (...)
-1
 
2 comments

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Best Practices

The top-rated topics about Earned Value Management. Here you will find the most valuable ideas and practical suggestions.


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 object (...)
10
 
3 comments

EVM Implementation in Construction
I am interested to know about EVM implementation in a construction company. Projects like a group of buildings, towers o (...)
9
 
4 comments

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 (...)
7
 
4 comments

Expert Tips

Advanced insights about Earned Value Management. Here you will find professional advices by experts.


Generic Steps in Earned Value Management

Project Management, EVM Implementation
1. Identify and organize all project steps: Identify all tasks that need to be accomplished and breakdown and organize t (...)

Limitations of Earned Value Management

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

Earned Value Management and Prompt Payment Clauses

EVM Contracting
IF Earned Value Management is combined with "Prompt Payment" clauses in the contract (which it should) then it enhances (...)

Recommendations for EVM Implementation

Critical Factors for EVM, EVM Best Practices
Based on a study, Kim, Wells and Duffey developed an implementation framework for EVM in order to implement EVM more eff (...)

Earned Value Management System

Standardization
Private companies use some form of business planning and control systems for management purposes. These planning and co (...)
Information Sources

Various sources of information regarding Earned Value Management. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Calculating the Basic Elements in EVM

Earned Value Management
Presentation that gives a short introduction into Earned Value Management (EVM), and focuses on its "basic elements" and (...)

DAU Gold Card

EVM Formulae
This is a one page summary produced by the Defense Acquisition University that summarizes the most common formulae assoc (...)

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


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