Editing Earned value management (section)

== Project tracking ==
[[File:EVM Fig1.png|right|Figure 1: Tracking AC against a "spend plan" is inconclusive (without EV).]]
[[File:EVM Fig2.png|right|Figure 2: Measuring schedule performance without knowledge of actual cost]]
[[File:EVM Fig3.png|right|Figure 3: Measuring cost performance without a PV baseline]]
[[File:EVM Fig4.png|right|Figure 4: The most common form of EVM graphic]]

It is helpful to see an example of project tracking that does not include earned value performance management. Consider a project that has been planned in detail, including a time-phased spend plan for all elements of work. '''Figure 1''' shows the cumulative budget (cost) for this project as a function of time (the blue line, labeled PV). It also shows the cumulative actual cost of the project (red line, labeled AC) through week 8. To those unfamiliar with EVM, it might appear that this project was over budget through week 4 and then under budget from week 6 through week 8. However, what is missing from this chart is any understanding of how much work has been accomplished during the project. If the project was actually completed at week 8, then the project would actually be well under budget and well ahead of schedule. If, on the other hand, the project is only 10% complete at week 8, the project is significantly over budget and behind schedule. A method is needed to measure technical performance objectively and quantitatively, and that is what EVM accomplishes.

=== Progress measurement sheet ===
Progress can be measured using a measurement sheet and employing various techniques including milestones, weighted steps, value of work done, physical percent complete, earned value, Level of Effort, earn as planned, and more. Progress can be tracked based on any measure – cost, hours, quantities, schedule, directly input percent complete, and more.<ref>{{Cite news|url=https://www.ecosys.net/reference/progress-measurement/|title=Progress Measurement for Project Performance Management|website=EcoSys}}</ref>

Progress can be assessed using fundamental earned value calculations and variance analysis (Planned Cost, Actual Cost, and Earned Value); these calculations can determine where project performance currently is using the estimated project baseline's cost and schedule information.<ref>{{Cite web|title=Earned Value Management (EVM) Guide|url=https://www.aresprism.com/guides/earned-value-management-guide/|access-date=2021-01-21|website=www.aresprism.com|date=17 December 2020}}</ref>

=== With EVM ===
Consider the same project, except this time the project plan includes pre-defined methods of quantifying the accomplishment of work. At the end of each week, the [[project manager]] identifies every detailed element of work that has been completed, and sums the EV for each of these completed elements. Earned value may be accumulated monthly, weekly, or as progress is made. The Value of Work Done (VOWD) is mainly used in Oil & Gas and is similar to the Actual Cost in EVM.