Special Issue Article
Project Performance Evaluation By Earned Value Method
Earned Value Management (EVM) is a project control technique which provides a quantitative measure of work performance. It involves a crediting (earning) of budget as scheduled work is performed. The earned value technique is a proven method to evaluate work progress in order to identify schedule slippage and areas of budget overruns. Value earned for a given task is computed as budgeted cost of work performed and is a function of time, work completed, and budget. Budgeted cost of work performed is compared against actual cost of work performed and budgeted cost of work scheduled to assess cost and schedule variances, respectively. Cost and schedule variances identified at the individual cost account level. Variances reported as a percent of the baseline and presented graphically. The work breakdown structure, detailed schedules and cost account budgets form the foundation for earned value assessment.