CHAPTER 16THE PROJECT EARNED VALUE MANAGEMENT SYSTEM

“Value is in the eye of the beholder.”

ANONYMOUS

16.1 INTRODUCTION

Earned value is a concept whose use is spreading today. In essence, the concept means that any use of resources should return something of value to those who provide the resources. It is a way of measuring both efficiency and effectiveness in the use of resources for some particular purpose. The concept and process of earned value management came about through the desires of managers to more accurately predict future project results while working toward organizational objectives and goals.

In this chapter, the application of earned value is applied to a project—as a means of gathering additional intelligence on how well the ...

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