What does 'Earned Value Management' (EVM) allow managers to assess?

Earned Value Management (EVM) is a powerful project management tool that integrates cost, schedule, and scope to provide a comprehensive understanding of project performance. By assessing these three critical elements, managers can determine how much work has been completed, the value of that work in terms of budgeted costs, and how the project is progressing relative to its planned timeline.

The core principle of EVM is that it allows for a clear visualization of project performance by comparing the planned work (the budgeted cost of work scheduled) with the actual work performed (the actual cost of work performed) and what was actually completed (the budgeted cost of work performed). This integration enables managers to identify variances, forecast future performance, and make informed decisions to steer the project back on track if necessary.

By providing detailed insights into whether the project is on budget, on schedule, or deviating in terms of either cost or time, EVM is essential for effective project control and management in defense spending, which is highly scrutinized and requires meticulous oversight. Thus, it equips managers with the necessary information to assess overall project performance effectively.