Earned Value Analysis

Earned Value Analysis (EVA) is a project management technique used to assess the performance and progress of a project with respect to its cost and schedule. It integrates the project scope, time, and cost to provide a comprehensive understanding of how a project is doing against its baseline. This method allows for the calculation of the Earned Value (EV), Planned Value (PV), and Actual Cost (AC), providing key metrics such as Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI). These metrics help project managers make informed decisions and take corrective actions when necessary, ensuring the project stays on track and within budget.

In the context of the PMP (Project Management Professional) certification exam, understanding EVA is crucial as it is one of the fundamental tools for measuring project performance. It is a critical component of the project management knowledge area known as Integration Management, where it plays a significant role in the process of controlling the project work. By applying EVA, project managers can identify variances from the project baseline early, enabling early corrective actions. This is particularly important in complex projects where the deviation from the plan can lead to significant cost overruns or schedule delays.