ABSTRACT
Earned Value Management is a project. management tool that uses information based on cost, programme, and work performance to define the status of the project. EVM helps the manager to deduce current trends to predict their likely final effect. This method is proved effective in cost control.
INTRODUCTION
Earned Value Analysis (EVA) is an industry standard method of measuring a project’s progress at any given point in time, forecasting its completion date and final cost, and analysing variances in the schedule and budget as the project proceeds.
WHAT IS THE PURPOSE OF EARNED VALUE ANALYSIS?
Earned value management (EVM) is a project management methodology that integrates schedule, costs, and scope to measure project performance. Based on planned and actual values, EVM predicts the future and enables project managers to adjust accordingly.
WHAT IS THE FORMULA
The formula to calculate Earned Value is also simple. Take the actual percentage of the completed work and multiply it by the project budget and you will get the Earned Value. Earned Value = % of completed work X BAC (Budget at Completion).