Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost data to measure project performance and progress. It helps project managers forecast project results based on current trends. EVM uses three primary metrics: 1. Planned Value (PV): The budgeted cost for work scheduled to be completed by a specific date. 2. Earned Value (EV): The budgeted cost for work actually completed to date. 3. Actual Cost (AC): The actual cost incurred for work completed to date. From these basic values, project managers calculate performance indicators: - Schedule Variance (SV = EV - PV): Shows if the project is ahead or behind schedule. - Cost Variance (CV = EV - AC): Indicates if the project is under or over budget. - Schedule Performance Index (SPI = EV/PV): Measures efficiency of time utilization. - Cost Performance Index (CPI = EV/AC): Measures cost efficiency. EVM also produces forecasts: - Estimate at Completion (EAC): Projected total cost at project completion. - Estimate to Complete (ETC): Additional funds needed to finish the project. - Variance at Completion (VAC): Projected budget surplus or deficit. EVM provides early warning signals for project issues, enabling managers to take corrective actions before problems escalate. It transforms subjective assessments into objective metrics, making project status transparent to stakeholders. To implement EVM effectively, organizations need a well-defined scope, detailed work breakdown structure, realistic schedules, accurate cost estimates, and consistent measurement methods. The PMP exam tests understanding of EVM calculations, interpretations, and applications in various scenarios. Mastering EVM is crucial for successful project management and passing the PMP certification.

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost data to measure project performance and progress. It helps project managers forecast project …

Concepts covered: Planned Value, Cost Variance, Estimate to Complete, To-Complete Performance Index, Earned Value, Actual Cost, Estimate at Completion, Variance at Completion, Budget at Completion, Control Account