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.


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)