The latest in the ongoing series of articles helping you get “PMP fit” explores the often avoided Project Cost Management knowledge area. To paraphrase a well-known company, just get at it. When you have read this article and completed your studying, you may well be asking yourself why you were so concerned about it…
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The author presents an approach for using a rate to monitor projects, based on the re-evaluation of two key concepts, work total, and the rate per unit of work. By periodically recalculating and updating rate values, considering the comparison of the actual work vs. the planned work, the project manager may develop reliable databases for use in future evaluations and follow-up projects.
Why is LOE as important for a project as other aspects like stakeholder satisfaction, cost overshoot and schedule variance? And are you approaching it the right way?
The best part about Project Cost Management is that there are only three processes. And while the first two processes are light dumbbell lifting, the third throws some heavy barbell exercises your way. Are you prepared?
The author presents a practical approach for the application of earned value focused on better project scope definition and project plan creation, both based on results. Project progress is credited only if deliverables are completed or milestones are achieved, increasing the objectivity of project performance measurement and probability of success.
In his practice, the author has encountered project managers who, resistant to change and primarily concerned with successful delivery of their project, have resisted the adoption of Earned Value Management (EVM) practices. He explains the importance of EVM for cost control and demystifies EVM tools, with examples using Microsoft Project® and the open source tool, OpenPPM.
Make sure those who are reporting progress on tasks know the rules or you won't get the accuracy that you expect.
Need some help digesting earned value management? An EVM project that is “broken” before its completion is easier to reconstruct and make useful...so open wide and get ready to chew.
CMMI provides several models that organizations can use to identify best practices and organizational improvements. Studying the maturity models and researching earned value management readiness reveals a series of baby steps for organizations to adopt EVM.
Are you ready for EVM? Our writer conducted a study on earned value management readiness based on 40 critical factors found in successful EVM implementations, and here we present the Top 10.