What do you mean by EVM and how it is used in project management

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Accepted Answer

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

EVM compares the actual work completed and the budgeted work to determine if the project is on track or not.
It uses three key values: Planned Value (PV), Actual Cost (AC), and Earned Value (EV).
PV is the budgeted cost of the work scheduled to be done, AC is the actual cost incurred, and EV is the budgeted cost of the work actually completed.
EVM helps in forecasting the project's future performance and identifying potential problems.
It also helps in making informed decisions about resource allocation and project scheduling.
For example, if a project has a budget of $100,000 and the PV is $50,000, AC is $60,000, and EV is $40,000, then the project is behind schedule and over budget.
EVM can be used in various industries such as construction, software development, and manufacturing.

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