Earned Value Management (EVM) is the cornerstone of modern project control.
It quantifies performance by integrating scope, time, and cost into one system.
Key EVM Terms
Performance Indices
Example:
- PV = ₹10,00,000
- EV = ₹8,00,000
- AC = ₹9,00,000
CPI = 8/9 = 0.89
SPI = 8/10 = 0.8
The project is over budget (CPI < 1) and behind schedule (SPI < 1).
Benefits of EVM
- Objective performance measurement
- Early warning of deviations
- Enables data-driven decisions
- Integrates cost, schedule, and scope reporting
“Earned Value turns project intuition into measurable insight.”