Earned Value Technique which refers specifically to the specific technique in which the actual values of the work related performance is measured for any and all particular work components and of schedule activities, control accounts, and projects. The earned value technique is a convenient one for project managers and project teams to utilize because if helps to concisely and fairly accurately determine some real time numbers and values as far as amount of work that will be expended and required for future performances as well as providing superior insight into the amount of work that has been expended previously. Earned Value Technique can also be known by the 3 letter anagram EVT. Earned Value Technique can also be referred to as the earning rules and/or crediting method. Earned value technique should not be confused with effort, which is described below, or with earned value, which is related but refers more to the actual value and less to the technique.
This term is defined in the 3rd and the 4th edition of the PMBOK.
If a project has no budget involved, and there is no standard costinng for manpower, is Earned Value Technique still relevant?
Example of such projects may be an application development project done by in-house developer.
Even a project done by an inhouse developer requires budget, given that the developer will receive a salary and this developer will not be allowed to work on this project for the next decades. Someone within the company will have thought about how much money a project will bring the company, be it in terms of saving manual work that would have to be paid, be it additional information that will allow for better decisions. If such a person does not exist, this is in fact worrying since you should always ask yourself what is the value that your work brings to the company…