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I use EVM and earned scheduling. In my case, the most useful is the prediction calculations.
I think EVM is an excellent tool too evaluate progress and a great guide for future progress.
Earned Value Management are very important to measuring the performance and actual progress of a project in comparison to the planned cost and schedule. Specifically it will help you understand if the project is over budget or under budget and if the project is behind schedule or ahead of schedule.
A project manager should start leveraging EVM calculations early on in the project because that is the greatest opportunity to successfully implement any corrective actions. Waiting toward the end of a project provides less time to successfully implement corrective actions and therefore more likely an unsuccessful project will result.
Agree with everything said thus far, I would add that one of the challenges with EVM is assuring that approved changes are incorporated into the data given. I've worked in very dynamic programs in the past where this was extremely challenging to keep up to date.
In simple words, Earned Value Management is important to keep a track on, at any point in time during project execution, how much money you have spent, whether in a controlled manner or not, and how much you would have for the remaining work to complete as per plan.
You can take corrective action if there is any issue in the initial budget planning, or how it is currently being spent.
These calculations are really very helpful to keep a track of your project's budget performance. By this you can plan spending milestones, during the project execution, as a checklist. And when you reaches these milestones, you can compare how much budget you planned up to this milestone, and how much budget you have actually spent so far or saved.
EVM also helps to give you earlier proper warning sign if you have spent more then the planned. In such case EVM helps you to forecast how much more budget you need for the remaining work to be completed per project as plan.
EVM is a must for fixed price projects within an accrual-based accounting system.
Drake, The benefits of EVM mentioned in your article are not the actually the benefits of EVM. Rather, they are general benefits of project monitoring. Specific benefit of EVM is that it provides a singular view of Scope, Time and Cost. Moreover, I believe, point 4 is not worded properly. There is a difference between lag & missing timelines. EVM does not tell anything about lags. Similarly, there is a difference between risk and issue EVM can identify both risks & issues but wordings of point 4 suggest that you wanted to talk about risks.
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