1. What Is Earned Value Management (EVM)?

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost to measure project performance and progress. The Earned Value (EV) represents the value of work actually performed.

2. How Is EV Calculated?

The basic EV calculation formula is:

Where:

• \( EV \) — Earned Value (USD)
• \( BAC \) — Budget at Completion (total project budget in USD)
• \( \%\ Complete\ Actual \) — Percentage of work actually completed (as decimal)

Explanation: EV measures what the project has actually earned based on the work completed to date.

3. Importance of EVM

Details: EVM provides objective measurement of project performance, helps identify variances from the plan early, and supports better decision-making.

4. Using the Calculator

Tips: Enter the total project budget (BAC) in USD and the actual percentage of work completed (0-100%). The calculator will compute the Earned Value.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and Actual Cost (AC)?
A: EV measures the value of work performed, while AC measures the actual cost incurred for that work.

Q2: How is EV different from Planned Value (PV)?
A: PV represents the planned value of work to be completed, while EV represents the actual value of work completed.

Q3: What are typical EVM metrics derived from EV?
A: Common metrics include Cost Variance (CV = EV - AC), Schedule Variance (SV = EV - PV), and performance indices (CPI, SPI).

Q4: When should EV be calculated?
A: EV should be calculated at regular intervals (weekly, monthly) throughout the project lifecycle.

Q5: What are limitations of EVM?
A: EVM requires accurate progress measurement and may be less effective for agile projects or those with unclear scope.