What is Earned Value Management (EVM)?

Earned Value Management (EVM) is a project performance measurement technique that integrates cost, scope, and time data, making it possible to assess a project's performance in a comprehensive manner. EVM uses three key performance indicators: planned value (PV), earned value (EV), and actual cost (AC), which allow project managers to evaluate how much work has been accomplished in relation to the budget and schedule.

By employing EVM, project managers can identify variances in performance, analyze trends, and predict future performance more accurately. This holistic approach enables effective decision-making and facilitates timely interventions to keep the project on track.

The other options, while related to project management, do not fully encapsulate the essence of EVM. Budget forecasting, calculating project risks, and scheduling tools each serve their purposes in project management but lack the integrated focus on cost, scope, and schedule that EVM provides.