The Earned Value module uses the concept of Earned Value Management (EVM), which is an analytical tool that allows Project Managers and stake holders of a project to determine whether a project is on schedule and on budget. Based on the outcome of the earned value analysis, the project manager can determine if corrective action is needed to ensure that the project can be completed with in its constraints. Examples of corrective action can be the change of project scope, extension of the schedule, or the addition of resources.
There are a number of parameters that are used to calculate Earned Value to determine if a project is on schedule and on budget. Some of these parameters are Budget, Progress, or Actual Cost. All of these parameters must be considered together to determine the current state of a project. One of the key components of this technique is to capture the progress of a project. This progress is usually provided by a General Contractor or the person who is in charge of the project. These progress entries are analyzed to determine the state of the project. Progress information entered by user can be analyzed to determine the progress of the project with respect to budget and schedule.