Earned Value Management
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What is Earned Value Management?

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?”


Earned Value Management Basic Concepts   Basic concepts of EVM:
 
  • All project steps “earn” value as work is completed.

  • The Earned Value (EV) can then be compared to actual costs and planned costs to determine project performance and predict future performance trends.

  • Physical progress is measured in dollars, so schedule performance and cost performance can be analyzed in the same terms.


Brief History:

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.

Successfully Presenting Earned Value is a free e-book which will help you learn to implement and present Earned Value schedules.  It offers both an explanation of Earned Value Management principles, and step-by-step instructions.  This e-book is offered at no charge.  After reviewing it, you may be interested in downloading our Milestones Professional software.  Milestones Professional was used to produce the presentation-ready Earned Value reports shown in the e-book and can be used to make schedules in many formats, including Gantt charts, Milestone charts, Summary charts, Resource Charts and more.