Earned Value Management (EVM) relies on several key metrics to assess project performance. Budgeted Cost of Work Performed (BCWP), often referred to as Earned Value (EV), represents the planned value of the work actually completed. It is determined by multiplying the percentage of work completed by the initially approved budget for that work. For instance, if a task budgeted at $1,000 is 50% complete, the calculated value is $500.
Understanding this measurement allows project managers to objectively evaluate progress. It provides a standardized method for comparing the amount of work accomplished to the original plan, identifying potential overruns or underruns. Historical application demonstrates its value in various sectors, including construction, software development, and engineering, contributing to better project control and forecasting.
