What is Earned Value, how is it linked to Variance Analysis and how does this form the basis of project Monitoring and Control

As noted, EVM is a technique that project managers use to track the performance of their project against project baselines. Often the progress of a project is thought of simply as being ahead or behind schedule and over or under budget. However, what if you’re ahead of schedule, but costs are higher than your planned budget? Or, what if you’re behind schedule, but costs are lower than you first calculated?

This is where knowing the earned value helps. It can provide deeper information on your project. And when learning about earned value, it’s important to remember that there are three terms associated with it, which are each slightly different.

1. Earned Value Analysis (EVA): This project management technique is quantitative. It evaluates project performance by figuring out the likely results of the project. It does this by comparing the progress and budget of work planned to the actual costs.
2. Earned Value Management (EVM): This methodology measures project performance with an integrated schedule and budget, which is based on the project work breakdown structure (WBS).
3. Earned Valued Management System (EVMS): This is the collection of tools, templates, processes and procedures that an organization uses to do EVM.

Please click the following link to see a video explaining EVM