Earned value management techniques and applications in project

Question

Accepted Answer

Earned value management (EVM) is a project management technique used to measure project performance and progress in an objective manner.

EVM compares the actual work completed and the actual costs incurred to the planned work and planned costs.
It provides a way to forecast project performance and identify potential problems early on.
EVM uses three key metrics: Planned Value (PV), Earned Value (EV), and Actual Cost (AC).
PV represents the budgeted cost of the work scheduled to be done, EV represents the budgeted cost of the work actually completed, and AC represents the actual cost of the work completed.
By comparing PV, EV, and AC, EVM can calculate key performance indicators such as Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI).
SV and CV measure the deviation from the planned schedule and budget, while SPI and CPI measure the efficiency of the project team in using time and money.
EVM can be applied to any type of project, from construction to software development.
It is widely used in government and defense projects, where it is often a contractual requirement.
EVM can also be integrated with other project management techniques, such as risk management and change management, to provide a comprehensive view of project performance.

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