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Project Metrics

Earned Value Management:

This article provides an overview of Earned Value use including detailed calculation examples. Tres provides practical insight and caution for when to use Earned Value Management.

“Because EVM is only measuring completion of tasks against budget, it can be misleading. For example, let’s say you’re leading an effort where the value is not realized until the project is completely finished. In this situation, you have not received 50% of the value when milestones are 50% complete. Instead, you receive 0% of the value until the project is 100% complete. EVM is not the right metric in this situation.”

“If you have a budget that is linear over time, and if spending money is synonymous to progress towards value realization, then EVM can be a good metric. Otherwise, don’t use it.”