Earned Value Management

Earned Value Management

Earned value is a management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned,  budgeted, and  scheduled in time-phased "planned value" increments constituting a cost and schedule measurement baseline. There are two major objectives of an earned  value  system: to encourage contractors to use effective internal cost and schedule management control systems; and to permit the customer to be able to rely on timely data produced by those systems for determining product-oriented contract status.

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