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 Earn Value Management (alias EVM) 16 April 2007
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Earned Value Management is a process for tracking how well a project is progressing relative to the final budget and schedule. Cost Performance Index (CPI) and Schedule Performance Index (SPI) are important measures of the programs. CPIs and SPIs less than 1 are problem indicators. A Cost Schedule Index (CSI=CPI*SPI) less than one can be an indicator that your program is not executable.
Earned Value Management can be very deceptive if you project includes significant schedule items billed to third parties. Large bills received early in the task would provide unnecessary CPI alarms. However, bill payments delayed until late in the schedule would mask potential CPI alarms at the beginning of a program. |
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