Earned Value Analysis (EVA) is a method for objectively forecasting a project's progress and what it will end up costing the enterprise. Employ EVA as an effective tool for tracking project performance against estimated scope, time, and costs.
What Is EVA?
EVA—sometimes called "productivity analysis"—is a project management technique designed to assess project health by comparing project budgets and expenditures to the value of the work accomplished. These metrics are then communicated either to senior management, customers, or other stakeholders. EVA is therefore used as a tool to determine if poorly-performing projects should be terminated by assessing them in an objective and quantifiable manner.
Step 1: Determine Key Values
There are several components to calculating EVA. The first is to gauge three key values for each activity within the project's scope.
- Planned Value (PV): The projected cost to complete the work by a given date.
- Actual Cost (AC): How...
