Earned value management (EVM), or Earned value project/performance management (EVPM) is a project management technique for measuring project performance and progress in an objective manner. In a single integrated system, EVM is able to provide accurate forecasts of project performance problems which are an important contribution to good project performance. It is therefore considered a Performance Management approach.
Early EVM research showed that the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance. More recent research studies have shown that the principles of EVM are positive predictors of project success. The popularity of EVM has grown in recent years beyond government contracting, a sector in which its importance continues to rise (e.g., recent new DFARS rules), in part because EVM can also surface in and help substantiate contract disputes.
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