Chapter 17: Earned Value Management

In this chapter, we review the importance of obtaining the best perspective on a program and its inherent risks by linking cost estimating to earned value management (EVM). We describe a best practice for cost estimators and EVM analysts: sharing data to update program costs and examining differences between estimated and actual costs to present scope changes and risks to management with sufficient lead time to respond. We discuss implementing EVM and summarize benefits and obstacles, and the EVM guidelines. In addition, the 13 activities that encompass the EVM process are discussed. Further discussion is included on how to use EVM to manage program costs through execution as well as updating the EVM system and the cost estimate.