`Have you heard of the Earned Value Management methodology?` It's a really cool way of assessing how a project is performing and progressing. Basically, it combines scope, schedule, and resource management to give a comprehensive picture of what's going on. Interestingly, this methodology is really popular in countries like Australia, the UK, and the US. That's probably why the AUKUS alliance is becoming more favorable - just kidding! But seriously, this methodology is especially useful in large projects, such as the defense sector, where the work breakdown structure can get pretty complex. But don't worry, Earned Value Management can handle it! It can effectively create performance reports for different levels of aggregation. So, if you're working on a big project and want to keep track of how things are going, this might be just the tool you need! Did you know that EVM is a tool that we all use in our projects? It may sound technical, but having some knowledge about it can actually help you and your team better understand the project status and report more accurately on its progress. So don't worry if you're not an expert - just a little bit of understanding can go a long way! # Understanding EVM terminology - `(BAC) stands for "Budget At Completion"`. This represents the original cost estimate, budget, or quotation that was provided. - `(EAC) stands for "Estimate At Completion"`, which is a revised budget based on the current performance. - `(PC) stands for "Percentage of Completion"`. This is a measure used to track the progress of an activity or project up to a certain point in time. We use three important measures of earned value to track our progress towards our goals. These measures are compared to a specific date to assess how far we have come. By using these metrics, we can accurately determine our progress and make any necessary adjustments to stay on track: - `Planned Value (PV)` is the value of the work that has been planned, as defined in the time-phased budget assigned to that work. - `Actual Cost (AC)` or `Actual Value (AV)` is the cost incurred to complete the work performed. - `Earned Value (EV)` represents the value of completed work in terms of the budget allocated for that work. When managing a project, it's important to consider above three key measures to track progress. These measures can help you ask important questions such as: - Are the actual costs lower than my planned budget? Is my project on track or falling behind schedule? - If the project's actual costs are now higher than what was budgeted and the project is only halfway complete, what is the likely cost at completion? - If the project manager is assuring you not to worry about cost overruns and that the rest of the work will cost less than budgeted, is this probable? In that scenario earned value management (EVM) is a valuable tool for measuring progress on a project and providing simple reports on both performance and forecast. It is an effective way to equate progress with physical progress and used as a forecasting tool. Additionally, it can be presented in a graphical format. It integrates with the % completion of the project by measuring the three performances: - Cost Performance - Schedule Performance - Scope Performance # Earned Value Now you're curious about how a project's progress is measured using Earned Value. This is determined by looking at how much of the project has been completed physically, as well as the budgeted cost for the whole project.  You can calculate this value using a formula: **`EV = % complete (PC) x BAC`** # In-Depth Project Approach using Earned Value Management... Earned Value Management (EVM) has became part of large and mid-range project(s), as risk in project management revolve around over cost, schedule and process. Where EVM has taken place in delivering most efficient and controlled method in project management, even though it was criticized in its early days (20 years back) for its inflexibility due to set of principles  now became basic principles of project control as it answers to question such as; - Whether actual cost of project are lower than planned cost? - Is project in control or behind schedule? - What shall be project cost at its closure? - Is project still within budget? - What is project efficiency of utilizing time and resources? - What is project profit? - What is return of investment at project closure? All other tools deals with actual cost of project at its completed work by comparing to baseline (budget), which misses effective project performance. EVM is defined as method for project's measuring, monitoring and communication within real-time performance. ### Why Earned Value Management (EVM) - EVM helps to calculate project final cost and completion date way before project closure. - EVM calculates expenses as cost, without result, in this way there is no over confident actual cost estimate for project progress which gives flexibility to revert/change quickly. - EVM provides clarity on project cost and schedule. - EVM is easy to reschedule even though it is departed from plan, which acts as helpful tool for project, program and portfolio managers. - Good thing of EVM is it fits in all program and projects at any industry. ### Thing to understand on Earned Value Management - It's not a tool for financial management, - It's not a substitute tool for project management or project leadership, - It does not guarantee project success. - EVM is little used in most Australian and other countries government programs due to Security (as it is flexible to integrate it to other system) and also produce complex reports. - Due to EVM's transparency on costs, schedules, (technical) performances and risk data it is most trusted tool in higher management, which developed new culture of openness, trust and honesty in project environment. ## Project Control Project control is known as key activity in project managers for success as it is considered 50% of project's working time. As project's are controlled and monitored to identify and control deviations from plan as early as possible. **Fundamentals;** - Project Control is more than number crunching, it is leadership method, - Project Control starts after project planning and ends after project closure, which is actively controlling and monitoring project at its each stage based on [WBS] through cost control, quality control,