Earned Value Management - Application of Performance Evaluation System for High Value Contract Management

摘要

Traditional cost performance compares planned expenditure versus actuals incurred, but the schedule performance cannot be linked directly with the expenditure. In order to make an assertive and accurate planning system, it is essential to measure both cost and schedule performance collectively. Earned Value Management System (EVMS) enables combined schedule performance with the cost performance and provides a 3 dimensional integrated approach to assess the progress of the contract with respect to Schedule, Cost and Technical aspects. This paper provides an insight to the EVMS concept with a practical example of evaluating the performance of a major contract using EVMS.