WHAT IS EARNED VALUE MANAGEMENT (EVMS?)
We get it. Earned Value Management can be overwhelming and complicated, not to mention costly.
Earned Value Management (EVM) emerged as a financial analysis specialty in United States Government (USG) programs in the 1960s, but it has since become a significant branch of project management and cost engineering.
Understanding a project's scope of work, schedule and budget objectives serves as the primary starting point for establishing an end-to-end integrated schedule and budget time-phased project baseline plan (a.k.a., the Performance Measurement Baseline) for measuring contract performance.
EVM provides project team members throughout the entire project lifecycle the ability to identify problems, implement corrective action plans, and determine final project costs. It also provides management the opportunity of re-planning future program events to align with current and future contact milestones and project deliverables.
EVM methodology improves upon traditional plan versus actual method of project planning and reporting by measuring work accomplishment against the time-phased baseline plan and actual costs. Project Managers can easily determine at any point-in-time if technical achievement and schedule and/or cost variances will impact a project's final cost.
EVM use similar project management core principles to organize, plan, budget, monitoring & control and report project performance. Like project management EVM offers corporate and project stakeholders with flexibility and repeatable management framework to effectively manage projects.