What is earned value management (EVM)?

Earned Value Management (EVM) is primarily recognized as a project management technique used to evaluate a project's progress and performance by integrating cost, schedule, and technical performance metrics. It offers a quantitative approach to measuring how much work has been completed in terms of the budget and time, allowing project managers to assess whether a project is on track, ahead, or behind schedule and budget.

By using EVM, project managers can analyze three key metrics: Planned Value (PV), Earned Value (EV), and Actual Cost (AC). These metrics help in determining the cost efficiency (Cost Performance Index) and schedule efficiency (Schedule Performance Index) of the project, providing insight into potential performance issues. This method not only helps track current performance but also serves as a basis for forecasting future project performance, making it a vital tool in project management.