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earned value management (PM) (EVM)

Earned Value Management(EVM) refers to the methodology with which management or the team responsible for project management enters into a project, its terms of reference and the project plan.

Earned Value Management is about adding value to the finished project, staying within budget and maintaining the earned value while using the required resources and objectively evaluating the progress of the project. Performance is determined by balancing budget and earned value against actual costs, relative to a reporting date. Project progress is determined by comparing the earned value as of the reporting date with the planned and expected values.

Earned Value Management recognizes three different EVM types: the Apportioned Effort, the Discrete Effort and the Level of Effort. In Apportioned Effort, the costs of general activities are divided proportionally among the various Discrete Efforts. In production, for example, the costs for quality monitoring are allocated to the various projects. The situation is different with Discrete Effort, where the planned activities are measured and evaluated against the work result or output. In Level of Effort, the third EVM type, no specific end product is produced. The activities and the associated effort are evaluated according to the time it takes to complete them.

Englisch: earned value management (PM) - EVM
Updated at: 19.01.2021
#Words: 201
Links: Ethereum virtual machine (EVM), project management (PM), indium (In), monitoring, third
Translations: DE

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