Based in historical information and trend-analysis a forecast can be made on the required resources for a period of time. Based on the forecast the Project Manager will request a budget and decide how this budget is to be used in time. When doing this the Project Manager seeks to have a positive cash flow at any moment in time. A negative cash flow indicates that additional funding is required.
Earned value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of scope, schedule and costs. In a single integrated system, Earned Value Management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management. In complex environments like software development, an iterative and incremental or Agile approach is often used to deliver complex products more successfully.
Agile Earned Value Management is used as trend burndown/burnup graphs to make forecasts of progress towards a completion date transparent. However, EVM techniques are always used for the underlying calculations.