Earned Value Management (EVM) is a project control process based on a structured approach to planning, cost collection and performance measurement. It facilitates the integration of project scope, time and cost objectives and the establishment of a baseline plan for performance measurement. EVM helps by providing data to enable objective measurement of project status; providing a basis for estimating final cost; predicting when the project will be complete; supporting the effective management of resources; providing a means of managing and controlling change. It is applicable to projects of varying size, scope and duration.
EVM is a tool that integrates the cost, schedule and technical requirements of a project. It requires discipline in all aspects of the project; it requires that the organization performing the tasks to plan the work and then to work to that plan. Obviously, some problems will occur that could not be predicted and therefore will not be a part of the initial plan; however, good planning does allow a manager to better mitigate those issues and concerns that are known. The use of EVM also helps the project manager in determining the current project status by answering questions such as: Are we on schedule? Are we on cost? Do the costs reflect the true accomplishments? What are our variances?