Earned Value Analysis : A tool for decision-making
ATTENTION : This article is still a work in progress
The Earned Value Analysis (EVA) Is a method used in Project Managment for monitoring the performance and progress of a project through a comparison of the planned project and the actual project. Measurements from the project, of the three components of the Project management triangle, Time, Cost & Scope are used as input in the analysis to create an objective estimate of the project's health. The purpose of EVA is to enable to project manager to make informed decisions based on objective results that are directly derived from the project's main performance indicators Time, Cost & Scope.
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History
The Earned Value Analysis, initially named PERT/COST was first used by the US government in the 1960s as the tool was imposed onto the contractors of the US Department Of Defense as a way of standardising the performance tracking of all the departments different projects. PERT/COST generated a large discontent amongst the contractors due to it's inefficiency and was ultimately changed by the US Department Of Defense in the late 1960s. From this a new analysis arose called Cost/Schedule Control Systems Criteria (C/SCSC) which is the criterion based approach that now used widely through all of project management and known as the Earned Value Analysis (EVA)
Overview
EVA is a dynamic project management tool that allows a project manager to measure or forecast the performance of a project at any given time throughout the lifetime of a project. it's use of quantitative performance indicators makes it an objective tool which can be utilised in any scenario. The tool EVA is the fundamental element in the so called Earned Value Management
