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Project Management & Agile · Foundational

Earned Value Management (EVM)

Methodology that integrates scope, schedule, and resources to objectively measure project performance and progress.

Definition

EVM compares planned value, earned value, and actual cost to compute variances, indices, and forecasts. It requires a performance measurement baseline and agreed rules for measuring earned value.

Example

At month 4: PV $400k, EV $350k, AC $420k, indicating behind schedule and over budget.

Exam tip

Memorize: variances use subtraction (EV first), indices use division (EV on top).

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