What would be an effective way to analyze the project performance based on earned value management?

Evaluating earned value (EV) against the budget is a fundamental aspect of earned value management (EVM). This approach provides a quantitative measure of project performance by integrating the three key dimensions: planned value (PV), earned value (EV), and actual cost (AC).

When you assess EV against the budget, you're essentially comparing the value of the work actually completed (earned value) with what was planned at that point in time (budgeted value). This comparison helps in determining if the project is ahead, on track, or behind schedule and whether it is under or over budget.

By using this analysis, project managers can derive critical performance indicators, such as the cost performance index (CPI) and schedule performance index (SPI), which can inform future decisions and adjustments to ensure the project stays aligned with its objectives. This metric-driven approach allows for more objective assessments of the project's health compared to qualitative measures or individual performance evaluations.