Overview of one of today's most effective management approaches.
EVM is a management approach which upon incorporating any type of program – provides all levels of management with early visibility into cost and time related problems.
EVM helps provide the basis to assess work progress against a baseline plan, relates technical, time and cost performance, provides data for pro-active management action and provides managers with a summary of effective decision making.
Benefits of EVM
EVM provides more information than normal project tracking. It is a step further by answering the question; Have we got to where we want to be in the project? and When are we going to finish this project? It helps define more accurately as to where we are in the project as well as calculate its successful completion.
The value added approach helps achieve greater visibility and control of the project activities which helps in responding to issues early on, thus making it possible to meet the project timelines. It provides a clear communication of the activities involved and improves project visibility and accountability.
The basic principle of earned value management (EVM) is that the value of the piece of work is equal to the amount of funds budgeted to complete it.
To describe your project’s schedule and cost performance with EVM, you use the following indicators: