EVM is a project management cost‐control/performance measurement technique.
It compares the PLANNED vs ACTUAL PERFORMANCE.
EVM measures and compares:
• The amount of work actually completed and the resources actually consumed at a point in time in the
project, with
• The amount of work planned (budgeted) to be completed and the resources planned to be consumed at
the same point in time in the project.
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On the work‐package level:
• EV = PV when the work is done, otherwise EV < PV.
• AC is the actual cost of performing the work. It can be more or less than EV, and PV.
Note: A good baseline schedule – accurate and complete estimate of work/resources/time is a must to use EVM.
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Using an example to clarify the concept:
You have a project to build a new fence around a circular running track.
The fence is 5‐sided as shown in the diagram. Each side is to take one
day to build, and with a budgeted for AUS$2000 per side. The sides are
to be completed one after the other.
Today is the end of day three. And, the project status:
Day 1’s task: Completed, and spent AUS$2,000.
Day 2’s task: Completed, and spent AUS$2,400.
Day 3’s task: Completed 50%, and spent AUS$1,200.
Day 4’s task: Not yet started.
Day 5’s task: Not yet started.
Use the project status information provided to calculate EV, etc and results are captured in the chart below:
Reference:
1. Introduction to Project Management by Kathy Schwalbe.
2. http://en.wikipedia.org/wiki/Earned_value_management
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