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.