What is earned value management used for?

Earned value management (EVM) is a powerful and widely-used project management technique that provides a comprehensive method for assessing project performance and progress by evaluating project scope, schedule, and cost in a cohesive manner.

This technique integrates three key metrics: Planned Value (PV), Earned Value (EV), and Actual Cost (AC). By comparing these metrics, project managers can determine how much of the planned work has been completed (EV) and how that correlates to the original budget and timeline (PV and AC). This allows for a clear assessment of how well a project is performing compared to its baseline, enabling project managers to identify variances early and make informed decisions to keep the project on track.

In addition to tracking performance against budget and schedule, EVM helps to forecast future performance based on current trends and provides insight into potential future outcomes, making it an invaluable tool for project managers in maintaining control over their projects. This capability is essential for making timely adjustments and ensuring project success.

In contrast, calculating project expenses focuses solely on financial tracking without the broader context of performance assessment that EVM provides. Aligning project objectives with stakeholder needs is crucial for project success but does not represent the specific function of EVM. Lastly, assessing team performance