Project Management
Earned Value Management (EVM)
A project management methodology that integrates scope, schedule, and cost to measure project performance and progress.
What is Earned Value Management (EVM)?
Earned value management (EVM) is a project management technique that measures project performance by comparing the planned work, the work actually performed, and the actual cost. It provides an objective, quantifiable view of project health.
Key Metrics
- **PV (Planned Value)** — the authorized budget for scheduled work
- **EV (Earned Value)** — the budget value of work actually performed
- **AC (Actual Cost)** — the actual cost incurred for the work
- **CV (Cost Variance)** = EV - AC
- **SV (Schedule Variance)** = EV - PV
- **CPI (Cost Performance Index)** = EV / AC
- **SPI (Schedule Performance Index)** = EV / PV
Interpretation
- CPI or SPI > 1.0 — project is under budget or ahead of schedule
- CPI or SPI < 1.0 — project is over budget or behind schedule
Why EVM Matters
EVM provides early warning signs of schedule delays and budget overruns, allowing project managers to take corrective action before problems become critical.
Related Terms
- Critical Path Method (CPM)
A scheduling technique that identifies the sequence of dependent activities determining the shortest possible project duration.
- Look-Ahead Schedule
A short-term schedule (typically 2–6 weeks) that provides detailed activity planning beyond the master schedule.
- Gantt Chart
A type of bar chart that illustrates a project schedule, showing the dependency relationships between activities and current status.
- Construction Management
The planning, coordination, and control of a construction project from inception to completion.
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