Multidimensional project control systems, which integrate the critical to quality metrics of the project quality management, risk management, and program integration requirements into the earned value management system, delivers capability for the enterprise project team(s) in measuring the performance-based earned value of the project deliverables.
One of the inputs earned value management (EVM) uses to obtain an indicator about the cost performance of projects is the cost incurred by the project until a certain date. Typically, such information is provided by finance departments. This paper reviews the different methods used by finance departments to calculate and measure the incurred costs in projects, and how these methods may impact the way the project manager applies the EVM to measure, control, and track the status of his or her project.
One of the best ways of selecting a project is by utilizing economic value added (EVA) methodology. This methodology is also considered a criterion of project acceptance. EVA requires effective collaboration between finance and project management, an alliance that not only enables the project management professionals to understand how the company's finance works, but also allows them to assist business leaders in making better financial decisions.
The challenge addressed in this article is that of using earned value in an IT project of less than US$20 million with multiple solution partners, fixed cost contracts, no labor cost data, and an 18-month deadline. The discussion presents an example of an innovative use of a research and development (R&D)–based earned value technique. The software project overview is presented, traditional earned value reviewed, the derivation of the R&D approach is discussed, and the article closes with a look at the organizational benefit of the technique.
This article presents a variant on the use of schedule performance index (SPI) and schedule variance (SV) to manage schedule performance and includes a description, rationale, and explanation on how to apply the technique. An actual project, as well as examples, are used to illustrate the value and application of the technique. A basic understanding of earned value management (EVM) is required to understanding the article, whereas actual practice using earned value management, schedule performance index, and schedule variance is recommended.
This article focuses on an easy-to-use implementation of earned value management (EVM) and, specifically, cost performance index and estimation at completion - Cost side by side with the Critical Chain Method. The EVM implementation gives a comprehensive answer for budget management and budget report requested by the project sponsor.
Earned value management (EVM) is the control tool used for cost control, which is one of the most important areas in project management. It also provides additional useful information for the schedule variance. When used with progress reporting to determine schedule variance and schedule performance index, EVM becomes a highly valuable tool to track both cost and schedule. Budgets for projects with only department-wide budget allocations are analogous to a household electricity bill, having few details.
The goal of this article is to encourage project managers to participate in an academic survey to help determine if an organization is ready to apply earned value management to its projects. If you are interested in learning more about EVM--and providing input into an assessment tool to help determine if an organization is ready to apply earned value--please read on!
The ezEVA template is an effective tool to track and manage project health throughout a project. The historical tracking allows project managers to determine past and future performance trends. The metrics provide additional performance and cost indicators that provide a better assessment of project health.
Earned value is one solution to managing the various project story problems that we run into on daily basis. This story explores additional earned value calculations to forecast future performance and additional indicators of troubled projects.