Earned Value Project Management, Second Edition

Chapter 10. Forecasting Final Cost and Schedule Results

There are numerous reasons why more and more companies are beginning to employ a simple form of earned value to help manage their projects. Earned value requires that projects work to an “integrated” baseline plan, meaning that the defined scope of work must relate to the authorized resources, which are then set into a time frame for performance. We know of no other technique that fully integrates the project’s scope, costs, and schedules.

But perhaps the single most compelling reason to employ earned value is that it enables the project manager to be able to “statistically” forecast the (probable) final cost, and schedule results on the project ... from as early as the 15 percent completion ...