Earned Value

Earned Value Management Basics and

Frequentley Asked Questions

Process | Accreditation and Exams | FAQ

Process

Earned value management is a project control process, based on a structured approach to planning, cost collection and performance measurement.

The primary objectives of using EVM are to:

  • Identify and mitigate risks to successful delivery of the project;
  • Relate time-phased budgets and schedule to the scope of work;
  • Establish a project baseline and variance reporting;
  • Integrate cost, schedule, and technical performance tracking and forecasting;
  • Provide management an effective early-warning system;
  • Provide accurate work progress information; and
  • Ensure data is current, accurate, and auditable.
The EVM Control Process incorporates 6 management processes. These are:
  • Definition of Scope
  • Planning
  • Data Capture
  • Analysis, Review and Action
  • Change Control
  • Risk Management

What it is:

  • A systematic PM process that results in an integrated plan against which performance is measured objectively
  • A systematic approach for calibrating the health of a project
  • A tool for establishing meaningful cost and schedule forecasts

 

Accreditation and Exams

Currently there is one level of accreditation for Earned Value Management which results in an internationally recognised qualification:

The Foundation certificate shows familiarity with Earned Value Management and will assist delegates with entry-level use of the process. Delegates will work through a case study for the practical application of EVM, and will learn how to use EVM in the Microsoft Project toolset. The qualification is intended for senior managers, project managers, programme office staff and project/programme management consultants requiring an understanding of the Earned Value Management method and its processes.

Earned Value Management Foundation Exam Format

  • 1 hour allowed
  • Multiple choice examination
  • There are 40 multiple choice questions with 40 marks available in total.
  • Closed book exam
  • The pass mark is 26 out of 40 available (65%)

 

Frequentley Asked Questions

Downloads

Benefits of Earned Value Management (PDF)

Official APMG Earned Value Management Leaflet (PDF)

 

What is Earned Value Management?

Earned Value Management (EVM) helps project and programme managers to measure project performance. It is a systematic project management process used to find variances in projects based on the comparison of worked performed and work planned. EVM is used on the cost and schedule control and can be very useful in project forecasting. The project baseline is an essential component of EVM and serves as a reference point for all EVM related activities. EVM provides quantitative data for project decision making.

In summary, Earned Value Management is a predictive analysis tool that when used effectively can highlight project or programme risks and opportunities. Used correctly, EVM will help detect the signals of a potentially problematic work package and allow the project or programme manager to "correct course" by taking timely corrective action.

The EVM accreditation helps candidates measure and control their project, program, and portfolio schedules and budgets. The accreditation is based on the best practices of project management professionals who have applied EVM to projects of all sizes across a wide range of industries.

 

What are the benefits of Earned Value Management?

EVM contributes to:

  • Preventing scope creep
  • Improving communication and visibility with stakeholders
  • Reducing risk
  • Accurate profitability analysis
  • Accurate project forecasting
  • Better accountability
  • Improved performance tracking

 

 

Where can I learn more?

The official page on the APMG website contains further information on Earned Value Management and other Best Practice products.