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.
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