What is earned value management (EVM) used for in project management?

Earned value management (EVM) is primarily used as a technique to assess project performance by integrating scope, schedule, and cost variables. It provides valuable insights into how much work has been completed compared to the planned progress and the actual costs incurred to date. By using key metrics such as Planned Value (PV), Earned Value (EV), and Actual Cost (AC), project managers can determine whether a project is on track, over budget, or behind schedule, allowing for timely decisions and adjustments.

This method enables teams to analyze the project in a holistic manner, providing a clear picture of performance against the project baseline. The effectiveness of EVM stems from its ability to not only track progress but also forecast future performance, which is essential for successful project management. The other options, such as planning project schedules, resource allocation, and stakeholder engagement, are essential components of project management but do not specifically capture the primary purpose of EVM, which is performance assessment.