Zephyr Professional Practice Test 2025 - Free Practice Questions and Study Guide

Earned Value Management (EVM) is indeed a technique to assess project performance and progress. It integrates the three core components of a project: scope, cost, and schedule, into a single management system. By analyzing the planned progress versus the actual progress, EVM provides insights into how much work has been completed at a given point in time relative to the budgeted cost and the planned schedule. This allows project managers to evaluate not just if a project is on track, but also quantify the performance in terms of schedule performance index (SPI) and cost performance index (CPI).

This technique is vital for proactive project management, offering early warnings regarding potential overruns in budget or schedule, which empowers project managers to take corrective actions before issues escalate. It transforms data from different aspects of project management into a unified view, enabling better decision-making and reporting.

The other options, while related to project management, do not encompass the full breadth of what EVM represents. Calculating the project budget, scheduling tasks, and facilitating communication with stakeholders are all important elements in project management but do not specifically define EVM.