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Earned Value Management Summary

Jun 29, 2025

Summary

  • The discussion provided an overview of Earned Value Management (EVM) as a technique for tracking project progress and performance.
  • The explanation covered the calculation of key EVM metrics: planned cost, actual cost, earned value, and variances.
  • Practical examples illustrated how EVM provides a clearer picture of project status beyond simple spending vs. budget.
  • The conversation briefly touched on Agile context and suggested using a tool for EVM integration.

Action Items

  • (No specific action items were mentioned in the transcript.)

Earned Value Management Overview

  • EVM measures project performance by comparing planned cost, schedule, and scope to actual work performed and actual costs incurred.
  • Example: For a project with a $10,000 budget, 3-month timeline, and 100 hours of work, halfway through the schedule $4,000 is spent, and only 25% of work is completed.
  • Earned Value (EV) is calculated: EV = Planned Cost × (Completed Hours / Total Scope Hours). In the example, EV = $2,500.
  • Schedule variance and cost variance are used to measure if the project is on track in terms of budget and timeline.

EVM in Agile Methodologies

  • EVM concepts translate to Agile using tools like burnup charts and backlog tracking.
  • Monitoring variances early allows teams to adapt and take corrective actions before problems escalate.

Tool Recommendation

  • Integration of Agile EVM in Jira is suggested, with Tempo Budgets mentioned as a possible solution.

Decisions

  • No decisions were made — the discussion was informational and did not include decision points.

Open Questions / Follow-Ups

  • None identified.