Earned Value Management (EVM)

EVM measures program performance against a baseline by integrating scope, schedule, and cost into three metrics: Planned Value, Earned Value, and Actual Cost. The derivatives CPI (EV divided by AC) and SPI (EV divided by PV) are the daily heartbeat of a defense program. EVMS compliance is mandatory on most federal contracts above $20M. The system is audited by DCMA against ANSI/EIA-748. A failed validation can put a contract into cost-overrun reporting and block future awards. EVMS-fluent PMs and cost or schedule analysts are perpetually scarce. Roles where this matters: Program Management, Finance, Cost and Schedule Analysis.