Discussion Question #2:

What is the concept of earned value? What real life examples would illustrate the earned value concept? How does this approach to performance measurement differ from simply tracking cost or schedule?

What is the concept of earned value?

Earned value is a management technique (EVM). EVM relates resource planning to schedules and technical performance requirements.

“Earned value management (EVM) is a systematic process that uses earned value as the primary tool for integrating cost, schedule, technical performance management, and risk management” (Kernzner, 2006, p. 612).

What real life examples would illustrate the earned value concept?