earned value (PM) (EV)

Earned Value (EV) is a measure of the work performed on a project and the budget estimated for it. It is a cost measure used to evaluate the return on the current project work.

Earned Value is calculated from the cost plan and captures all work performed on a given date and relates to the sub-objects in the work breakdown structure. The earned value and actual value are used to calculate the cost development index( CPI) and the cost variance( CV).

Earned Value is managed using Earned Value Management( EVM). This involves methods and plans with which the progress of the project and its Earned Value are recorded and compared with the target value.