A blog that looks at all aspects of project and program finances from budgets, estimating and accounting to getting a pay rise and managing contracts.
Written by Elizabeth Harrin from RebelsGuideToPM.com.
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Date
What goes into earned value? The five components needed to make it work are:
- A defined project scope
- A scheduling tool
- Estimates
- An accounting tool
- A way to generate appropriate reports
Earned value management is an effective way to manage project performance, but it all falls apart if you don’t have the right fundamentals in place. Without these five elements, you can’t effectively track and measure process, “the earned value way”.
And the good news is that none of these components are individually difficult to create. You probably already have an accounting tool in your organisation, for example, and creating a defined project scope is part of what you’ll be doing anyway while managing a project.
However, the thing that brings it all together and creates an earned value management system out of these components is a culture that believes EV is the way to track project performance, and that it’s worth spending time and effort measuring progress in this way.
What do you think? Do you have these fundamentals in place and do you use EV to manage project performance?
Posted on: July 01, 2021 10:50 AM |
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