Performance Driven Project Management

Performance Driven Project Management

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What is Earned Value Management? PDF Print E-mail

Earned Value Management (EVM) is the methodology for determining cost and schedule performance of a project by comparing planned work with accomplished work in terms of the dollar value assigned to the work. While it has been used by the Department of Defense (DoD) to standardize contractor requirements for reporting cost and schedule performance on major contracts since 1967, it has just recently become a widely accepted methodology for measuring project performance in the commercial industry.

EVM monitors project performance and enhance control by answering the following questions:

  • How much work should be done? 
  • How much work is done? 
  • How much did the “is done” work cost?
  • What was the total job supposed to cost? 
  •  What do we now expect the total job to cost?

An Earned Value Management Systems (EVMS) is a set of best business practices, processes, and tools for enterprise project planning and control.  The National Defense Industrial Association (NDIA) ANSI/EIA-748 Standard for Earned Value Management Systems Intent Guidelines defines thirty-two (32) requirements for:

  • Establishing baseline work definition and authorization
  • Establishing baseline schedules
  • Establishing baseline budgets
  • Developing control accounts
  • Using Earned Value Measurement Techniques
  • Statusing schedules and analyzing variances
  • Updating estimates at completion
  • Implementing management reviews and reporting
  • Authorizing and incorporating revisions/changes


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