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What is Earned Value in Project Management?

1 min read
Artem Gurnov
Artem Gurnov Director of Account Development, Wrike
See Wrike for PMO

What is Earned Value in Project Management?

Earned value refers to a value assigned to work, which can be stated in hours and/or dollars (or your local currency). Earned value management (EVM), on the other hand, is a tool used to measure and predict project performance by comparing planned versus actual earned value. Because EVM can track costs and schedules, it is quite useful for forecasting future projects. Earned value management provides stakeholders with additional insight into a project's status, as it compares actual time and money spent versus the planned hours and budget. Earned value and EVM were first developed and used in the 1960s by the US Department of Defense to track its various programs including NASA.

Further reading:


Advanced Terminology 5 questions
What Is Change Management in Project Management? What Is Cost-Benefit Analysis in Project Management? What is Cost Control in Project Management? What is Cost Management in Project Management? What is Cost Variance in Project Management?
Artem Gurnov

Artem is a Director of Account Development at Wrike. He previously held the role of Project Manager, overseeing a team of customer success managers (CSMs). Over the years of building teams and scaling business processes, he has successfully deployed multiple projects, from automating client outreach to setting up work prioritization tools for sales reps and CSMs.

#earned value management #project management #evm #forecasting
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