ABSTRACT
Earned value management (EVM) is a contemporary project management cost and schedule analysis technique that has gained broad industry acceptance. This chapter highlights the analytical value of Earned value (EV), which is often considered to be the best status measurement metric available. Based on its underlying modeling constructs, EV principles deal with many core project management areas, including formal scope definition, resource analysis, schedules, budgets, resource accounting, status analysis, reporting, and change control. Before delving further into the computational methodology, it is important to review one underlying concept critical to EVM implementation—that is, the Work breakdown structure and its associated Dictionary. The original 1960s’ EV notation was based on a four-letter acronym set, and this got heavily ingrained into the Department of Defense documentation that drove the concept through its early period from the 1960s into the 1990s. Several data and process areas in EV calculation impact the appropriate selection of a measurement approach.
