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Earned Value
Management is an integrated program management technique that integrates technical performance
requirements, resource planning, with schedules, while taking risk into
consideration. The major objectives of applying earned value to a contract
are to encourage contractors to use effective internal technical, cost and
schedule management control systems, and to permit the customer to rely on
timely data produced by those systems for better management insight. This
data is in turn used for determining product-oriented contract status, and
projecting future performance based on trends to date. In addition, Earned Value
Management allows better and
more effective management decision making to minimize adverse impacts to
the project.
In other words,
Earned value is a management technique that relates resource planning to
schedules and to technical cost and schedule requirements. All work is
planned, budgeted, and scheduled in time-phased ''planned value''
increments constituting a cost and schedule measurement baseline. There
are two major objectives of an earned value system: to encourage
contractors to use effective internal cost and schedule management control
systems; and to permit the customer to be able to rely on timely data
produced by those systems for determining product-oriented contract
status.
Earned Value
Management provides an
objective measurement of how much work has been accomplished on a project.
Using the earned value process, the management team can readily compare
how much work has actually been completed against the amount of work
planned to be accomplished. All work is planned, budgeted, and scheduled
in time-phased "planned value" increments constituting a Performance
Measurement Baseline.
More management models
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