29. Define Earned Value Management
The projected value (PV), earned value (EV), and actual cost (AC) is tracked at each monitoring point. PMB is the accumulation of all planned values, it stands for performance measurement baseline. Schedule variation (SV) and cost variance (CV) is estimated based on deviations from baselines. If earned value equals projected value, the project is on track to meet its objectives. If there is a major schedule or cost variance, proper action must be done to fix the slips. The estimate at completion (EAC) is calculated and compared to the budget at the end of the project. If there is a blunder, the financial repercussions will be known.
