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What is Earned Value Management? |
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| Earned Value
Management (EVM) is a project management system that combines schedule
performance and cost performance to answer the question,
“What did we get for the money we spent?” |
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Basic concepts of EVM:
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All project steps “earn” value as work is completed.
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The Earned Value (EV) can then be compared to actual costs
and planned costs to determine project performance and
predict future performance trends.
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Physical progress is measured in dollars, so schedule
performance and cost performance can be analyzed in the same
terms.
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Earned
Value has been used since the 1960’s by the Department of Defense as a
central part of the C/SCSC (Cost/Schedule Control Systems Criteria).
Recently, the DOD revised the 35 criteria contained in the C/SCSC and
produced the 32 criteria for EVMS (Earned Value Management Systems).
These criteria have since been accepted by the American National
Standards Institute/Electronic Industry Association as a new standard,
called ANSI/EIA 748. Now, EVM is being used in a wider variety of
government contracts, and is spreading through the private sector as a
valuable tool for project managers. |
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earned value, earned value software, bcws
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