What is Earned Value Management?
A. Earned Value Management, or EVM, is a widely accepted industry best practice for project management that is being used across the Department of Defense (DoD), the Federal government, and the commercial sector. It is the use of an integrated management system that coordinates the work scope, schedule, and cost goals of a program or contract, and objectively measures progress toward these goals. EVM is a tool used by program managers to: (1) quantify and measure program/contract performance, (2) provide an early warning system for deviation from a baseline, (3) mitigate risks associated with cost and schedule overruns, and (4) provide a means to forecast final cost and schedule outcomes. To see a simple example of how EVM actually works, click on this illustrative explanation.
