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Project performance  > EVM

Earned value method

The method of Earned Value (EVM) is a project management method that uses objective measures to determine the performance of the project.

Earned value is based on three basic elements:
- PV: Planned Value
- EV: Earned Value
- AC: Actual Cost
The following image explains the relationship between these elements.

By integrating these three measures, the earned value method should allow to answer the following questions:

- Did we spend more or less than we planned?
- How do we use project resources?
- When should the project end?
- What should project cost at the end?

 

"Lite" Earned Value

The implementation of EVM, as prescribed in ANSI-EIA-748 Standard, poses significant challenges for an average organization and requires a high level of project management maturity. However, the use of EVM should not be so expensive and complex. Solution: a "lite" approach that doesn’t require an extensive training in EVM, and assures a good project monitoring and control.

Earned Schedule

"Earned Schedule" (ES) is a new method developed to overcome the shortcomings of time performance calculations by the "classic" EVM method. This is an emerging method standardized by PMI and, unlike the "classic" method of earned value that expresses the difference of time in terms of efforts, ES expresses the difference of time in terms of calendar days..

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