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Earned Value Management

Earned value management (EVM) is a an approach that integrates schedule and cost to allow a program to assess the performance of the project. EVM emerged in the 1960's due to the the Department of Defense (DOD) requirement for contractors to manage complex defense programs more effectively.  Years later, in the 1990's, the Office of Management and Budget (OMB) worked with industry to develop a set of best practices to apply through out the federal government, which has been adopted by the American National Standards Institute (ANSI).  These standards have since been categorized into 32 guidelines, and applied to all federal contractors with contracts over $ 20 million.    Today EVM is used broadly across all federal agencies, not just the DOD.  It is worth noting that defense contractors understand the importance of EVM to projects, and many apply it to their commercial contracts as well.    Earned value management is a proven project management methodology.

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