What is earned value management (EVM)?

Earned value management (EVM) is best understood as a project management technique that integrates three critical factors: scope, time, and cost. This integration allows project managers to assess project performance through quantitative measures.

In EVM, the concept of 'earned value' refers to the value of work actually performed up to a specific point in time, compared to the planned value and the actual cost incurred. By analyzing these three dimensions, project managers can gain insight into how well the project is adhering to its schedule and budget and determine whether corrective actions are necessary.

The ability to measure and compare the planned progress against the actual progress using these integrated dimensions makes EVM a powerful management tool. It provides clear figures that inform decision-making and helps in forecasting future performance. This is why C effectively captures the essence of earned value management, as it highlights the comprehensive approach towards evaluating a project's overall health.