Earned Value Analysis

EVA is a method to objectively measure performance to date, and use the trends identified to forecast likely project outcomes. Unlike just using a Gantt chart, which may identify whether the project is ahead / behind or on schedule, EVA incorporates cost, schedule and quality. This makes it an excellent tool to more accurately forecast future performance, project completion date and total cost. It answers the following key questions:

•   What is the forecast total project cost?
•   Is the work being completed efficiently?
•   What is the forecast cost to complete?

By assigning a value to each piece of work (planned value), it is possible to measure actual products delivered (earned value) and the cost of achieving those deliverables (actual cost).

EVA uses these to provide a Performance Measurement Baseline, and provides indicators to identify and control problems at an early stage thereby giving the maximum opportunity to resolve issues and reducing their cost and impact. EVA establishes a defined set of measurements, indicies and forecasts that are easy to understand and unambiguous, thus providing valuable information to both the project manager and the project board on project progress.