The Costs and Benefits of the Earned Value Management Process

The question of whether the benefits of the earned value management process exceed the costs has not been adequately reported in the literature. Several studies report the costs but ignore the benefits. Others focus on the benefits, but ignore the costs. For example, a widely circulated report by Coopers & Lybrand and TASC (1994) concludes that the DOD regulatory cost is significant, and the requirement for earned value management systems (EVMS) criteria is among the largest cost drivers. However, the benefits of the earned value information derived from criteria-compliant contractors were not considered. Clearly, a report that addresses only the costs or the benefits of earned value may be misleading. This study addresses both the costs and the benefits of earned value. The earned value concept and the related criteria are considered. Based on a comprehensive literature review, studies reporting the costs or the benefits of earned value are summarized and synthesized. The result is a report that facilitates a more complete and objective evaluation of the earned value management process.