Earned Value Project Management Method and Extensions

TLDR

The earned value project management method integrates scope, cost, and time management, requiring periodic monitoring of expenditures and scope to calculate variances and performance indices, and enabling cost and schedule forecasting and corrective action. This paper aims to illustrate the major aspects of the earned value method and provide graphical tools for assessing project performance trends. It extends the method with logical extensions and useful simplifications to enhance its effective application in project management.

Abstract

The earned value project management method integrates three critical elements of project management: scope management, cost management, and time management. It requires the periodic monitoring of actual expenditures and physical scope accomplishments, and allows calculation of cost and schedule variances, along with performance indices. It allows forecasting of project cost and schedule at completion and highlights the possible need for corrective action. This paper shows the major aspects of the earned value method and presents graphical tools for assessing project performance trends. It provides logical extensions and useful simplifications to enhance the effective application of this important method in project management.