Earned Value - An Introduction to the Basic Principals
can't buy you friends but you can get a better class of enemy.
Keywords: Earned Value, Performance Management, AS 4817, Time Phased Budget, Actual Costs, Scheduled Costs, Planned Costs, CPI, SPI.
Earned Value - An Introduction to the Basic Principals [P006]
Earned Value Management (EVM) has proven itself to be one of the most effective performance measurement and feedback tools for managing projects. Timely and targeted feedback enables project managers to identify problems early and make adjustments that can keep a project on time and on budget. It enables managers to close the loop in the classic business formula, “Plan, Do, Check, Act.” EVM provides organizations with the methodology needed to integrate the management of project scope, schedule, and cost.
EVM uses effective practices in the areas of project planning and control, and are related to measuring, analyzing, forecasting, and reporting cost and schedule performance data for evaluation and action by workers, managers and other key stakeholders. This paper provides a basic overview of the workings of 'Earned Value'.