ACTA UNIVERSITATIS DANUBIUS Vol 13, no 2, 2017 234 Mathematical and Quantative Methods The Earned Value Management - A Measurement Technique of the Performance of the Costs and Labor in the Project Carmen Gasparotti 1 , Alina Raileanu 2 , Eugen Rusu 3 Abstract: Most of the planned projects have problems due to the cost and time overruns from different reasons. Earned value management (EVM) is a project performance evaluation technique that has been used in many projects from several fields, but which has been adapted to be used in project management to objectively track the physical accomplishment of certain work. The earned value analysis offers the possibility to manage the project performances in early stages of the project to point out the need of the eventual corrective action. This paper aims to present the main parameters involved in the calculation of the Earned Value Analysis (EVA) for a ballast plant on shipboard. Keywords: Earned Value Management; Earned Value Analysis; Cost Variance; Schedule Variance; Planned Value JEL Classification: 1. Introduction An important tool required to deliver the project on time is Earned Value Management (EVM). Earned Value Management is a project management methodology for control the project that is based on measuring work performance. It is a system that predicts the final cost and duration of the project by comparing the work done with that planned. In the same time, EVM is a warning tool, based on which the project manager identifies and controls any problem before it becomes critical, being able to exploit the project opportunities (Eun Hong et all, 2003, p. 375). The concept of earned value management has been first introduced as a fundamental approach in 1966 when the United States Air Force mandated earned value in 1 Associate Professor, PhD, “Dunarea de Jos” University, Romania, Address: 47 Domnească Str., Galati 800008, Romania, Corresponding author: carmen.gasparotti@ugal.ro. 2 PhD, Danubius University of Galati, Romania, Address: 3 Galati Blvd., Galati 800654, Romania, Tel.: +40372361102, E-mail: alinaraileanu@univ-danubius.ro. 3 Assistant Professor, “Dunarea de Jos” University, Romania, Address: 47 Domnească Str., Galati 800008, Romania, E-mail: erusu@ugal.ro. AUDŒ, Vol. 13, no. 2, pp. 234-247