Earned Value Management
Earned Value Management is an indicator that tells the performance of the Project to identify if the project is ahead or behind schedule or on Track and similarly over and under budget from a cost perspective.
Earned value management is a common methodology used in project management to determine if the project is progressing as planned from a cost and schedule perspective. The cost & schedule indicators like CV, SV, CPI and SPI are calculated using the Planned Value, Earned Value and Actual cost. These indicators will easily help PM identify the project status. CV & SV = 0 means the project is on track from a cost and schedule perspective, negative is bad and positive is good. CPI and SPI = 1 indicates that the project is on track as planned and <1 is bad and >1 is good.
In this video tutorial, I have used a simple project to demonstrate how the earned value methodology is applied. The project is to paint a room with 4 walls in 4 days with $400 budget.