NOWECO Management Software

Earned Value Analysis
Earned Value Management

Guideline on Earned Value Management and Booklet on Earned Value Analysis

Guideline on Earned Value Management

Issued by APM, the Association for Project Management, the Earned Value Management Guideline describes on 65 pages a systematic and disciplined approach to project control that can be used to help improve your project management, and ultimately contribute to the success of your projects.

The document has been prepared by an APM Earned Value Specific Interest Group working party chaired by Steve Wake M.A., M.A.P.M.

The organisations participating included: The Association for Project Management, BAA Terminal 5, BAE SYSTEMS, EDS, IBM, Laing Ltd, MOD, Defence Procurement Agency, The National Audit Office, The Office of Government Commerce, The Project Management Institute (UK Chapter), Rolls-Royce plc, Unisys

Booklet on Earned Value Analysis

You will learn everything you need to know about Earned Value Analysis by studying the book "E.V.A. - Earned Value Analysis" by Steve Wake. On 88 pages Steve Wake explains all details on Earned Value Analysis with a great sense of humour and a deep inside knowledge. The language avoids any academic tone and is easy to understand. For those who are interested in a German version we made a translation and put it into an electronic book (pdf format).

How to order both the Earned Value Management Guideline and the Earned Value Analysis booklet: Please place your order with us. The Guideline is available as electronic book (pdf file). The German translation of Steve Wake´s book is also an electronic version whereas the English version is a hardware booklet.

What is an Earned Value?

Earned Value is the amount of budget you can claim, representing completed work, the amount that is earned.

Earned Value

Why is the project calculation often inaccurately?

Quite often the 'Actual Cost of Work performed' red curve) are compared to the 'budget cost of work scheduled' (blue curve). But mind the gap, please! Take into consideration that such comparison only makes sense if you compare actual and budget cost for the same amount of work performed. If there is more budgeted work than work performed, you need to compare 'budget cost of work performed' (green curve) rather than 'budget cost of work scheduled'. Otherwise you would spend the budget for less work than scheduled. Vice versa: the completion of all activities exceeds the budget. You do not have enough money.

In the example on the left money will fall short in two dimensions: first because the actual costs are higher than budget cost of work scheduled, second because work performed is less than work scheduled. In other words: you spend more money for less work.

Even more crucial this becomes when actual cost are less than budget cost for work scheduled and the earned value is less than scheduled. Apparently, everything is fine, when less is spent than budgeted. The only problem is that the actual cost exceed the cost of work performed.