Project Management Institute

The case for earned value

The concept of earned value has its critics but can be a useful tool for project managers if used properly. A superficial comparison of the budget with actual costs does not reveal how a project is doing and can even be misleading. It is necessary to assess the degree to which a project's objectives have been met in relation to those planned. Even though earned value is disparaged in some quarters, it is a critical performance factor and a necessary part of a project manager's toolbox.
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