Abstract
The earned value project management method integrates three critical elements of project management: scope management, cost management, and time management. It requires the periodic monitoring of actual expenditures and physical scope accomplishments, and allows calculation of cost and schedule variances, along with performance indices. It allows forecasting of project cost and schedule at completion and highlights the possible need for corrective action. This paper shows the major aspects of the earned value method and presents graphical tools for assessing project performance trends. It provides logical extensions and useful simplifications to enhance the effective application of this important method in project management. The earned value project management method integrates three critical elements of project management: scope management, cost management, and time management. It requires the periodic monitoring of actual expenditures and physical scope accomplishments, and allows calculation of cost and schedule variances, along with performance indices. It allows forecasting of project cost and schedule at completion and highlights the possible need for corrective action. This paper shows the major aspects of the earned value method and presents graphical tools for assessing project performance trends. It provides logical extensions and useful simplifications to enhance the effective application of this important method in project management.