What is EVM and significance of EVM

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Accepted Answer

EVM stands for Earned Value Management. It is a project management technique used to track the performance and progress of a project.

EVM integrates project scope, schedule, and cost to provide a comprehensive view of project performance.
It helps in measuring project performance against the baseline plan and identifying variances.
Key EVM metrics include Planned Value (PV), Earned Value (EV), Actual Cost (AC), Cost Performance Index (CPI), and Schedule Performance Index (SPI).
EVM enables project managers to forecast project outcomes and make informed decisions to keep the project on track.
For example, if a project has a PV of $100,000, EV of $80,000, and AC of $90,000, the project is behind schedule and over budget.

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