It is a systematic project management process that can be very useful in project forecasting to calculate value of project management, performance management and progress in an objective manner. This approach is to measure and monitor the performance of project plan against the actual work, to find variances in projects based on the comparison of worked performed and work planned.
This helps to improve project visibility and accountability. And another purpose of earned value is to obtain an estimate for the resources that will have been used at completion. We evaluate project’s status, foresee risks and assess team productivity and quality of work.