Friday, February 22, 2008

What is Earn Value Management (EVM)

Earn Value Management (EVM) is:
  • a methodology that measures project progress by comparing actual schedule and cost performance against planned performance as laid out in the schedule and cost baseline.

Variables in EVM:

  • EMV involves calculating three independent variables to assess and monitor project cost and schedule performance progress. Those variables are:
    - Planned Value (PV)
    - Earned Value (EV)
    - Actual Cost (AC)
  • These 3 variables are used to provide measures of whether or not work is being accomplished as planned and to forecast project cost at completion.

2 comments:

PMGuy said...

Thanks for the insight on this topic. It is important to understand these aspects in order to pass pmp exam

elizabeth thomas said...

Thanks a lot for sharing your PMP Certificationlearning and experiences with your readers.

Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)