What is Earned Value Management - EVM? PM in Under 5

Earned Value Management (EVM) is a project management tool developed by the US Department of Defence in the 1960s to track program performance. It is used to measure and manage performance by comparing budgeted and actual costs, and schedule performance. EVM uses four primary measures: Budget at Completion, Planned Value, Earned Value, and Actual Cost. It helps in understanding cost and schedule performance simultaneously and allows for forecasting project outcomes using indices like Cost Performance Index (CPI) and Schedule Performance Index (SPI).

How does Earned Value Management help in project performance analysis?

What types of forecasts can Earned Value Analysis produce?

Explain the significance of Cost Performance Index (CPI) and Schedule Performance Index (SPI) in Earned Value Management.