As any seasoned project manager knows, projects can be technical and challenging and even the most organized of project managers will run into some problems along the way. Adding to the complexity of project demands is the fact that many organizations are facing increasingly difficult market or trading conditions, so now more than ever the requirement for planning and control around management of projects is critical. A re-occurring theme that project managers face is the management of their projects' performance and any project's performance can be diminished due to cost overruns and time delays.
A project manager's job is ultimately to keep control of a project and aim to have their projects completed all within an assigned time scale and budget. To ensure that the project manager sees these potential or real overruns, a process needs to be in place that provides effective project control. A suitable system within project management that provides an organization with this functionality is Earned Value Management (EVM). The systemic approach of Earned Value Management is to aid project managers in the area of project performance and answers the "how is the project going?" question in a quantifiable manner.
Due to financial or market constraints, projects selected for implementation must prove successful so an early warning system in place to resolve any issues that may arise during the project implementation process is a must. Earned Value Management looks at the real-time progression of a project by examining the work completed, the costs associated with that work and also the total number of hours used. Observing this progression will enable an organization to have greater control of the risks that could be associated with a project.
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