Earned
value (EV) is used in project management to estimate performance of a
task in relation to the budget as well as the schedule of that project.
The technique is often used to get the estimate of resources that might
be used by the time the project is completed. With earned value OH, your project manager is able to have an estimate of resources to be used to finish the project.
When doing such estimates, the figures arrived at in the onset of the project is placed against the figures at completion. This is since it may never be possible to arrive at and report an exact measure pertaining to the progress of the tasks versus the time already consumed. For instance, it is not possible to state a 50% completion at six months for a project scheduled to run over 12 months. This is for the reason that the duration alone never defines the overrun or underrun in the schedule.
This technique gives a better measure of the progress made. When used, you get credit for the work done upon the completion of the project. Each task is usually assigned a certain percentage such that the whole task adds up to a hundred percent. As every task is completed, it is added as the EV.
All the tasks are usually scheduled, budgeted and planned based on time and planned value increments that add to a baseline for performance measurement. The gained value gives the objective measurement to the tasks already accomplished in a project. The management generally can be able to evaluate the authentic completed tasks alongside the planned tasks. The difference between a planned and an earned task is termed as the schedule variance.
Project managers must agree on the scope of a project, make a work breakdown structure, and then allocate a budget to every work package. The manager will then come up with a schedule indicating the time required to complete the task. This planned value is then used in measuring the performance during the entire project. As the work is completed, it is compared to what was planned to show what has been achieved against what was planned.
Again, it is necessary to get the actual costs for the task from the accounting systems of an organization. This way, the cost can be compared to the EV to show an overrun or underrun. With this technique, however, the manager can be able to measure the performance and predict future outcome.
Through earned-value techniques, project managers can with great confidence report on the progress of a task. Consequently, the management will be able to decide on the time as well as the cost allocations soon enough.
Although past performance may be a good indicator to show the expected future performance, the EV is a better tool to predict the future outcome on cost and time to the completion and the estimated final costs. When well implemented, this technique gives the customer more confidence on the contractor because of his ability to manage a task well by giving objective reports on the project.
When doing such estimates, the figures arrived at in the onset of the project is placed against the figures at completion. This is since it may never be possible to arrive at and report an exact measure pertaining to the progress of the tasks versus the time already consumed. For instance, it is not possible to state a 50% completion at six months for a project scheduled to run over 12 months. This is for the reason that the duration alone never defines the overrun or underrun in the schedule.
This technique gives a better measure of the progress made. When used, you get credit for the work done upon the completion of the project. Each task is usually assigned a certain percentage such that the whole task adds up to a hundred percent. As every task is completed, it is added as the EV.
All the tasks are usually scheduled, budgeted and planned based on time and planned value increments that add to a baseline for performance measurement. The gained value gives the objective measurement to the tasks already accomplished in a project. The management generally can be able to evaluate the authentic completed tasks alongside the planned tasks. The difference between a planned and an earned task is termed as the schedule variance.
Project managers must agree on the scope of a project, make a work breakdown structure, and then allocate a budget to every work package. The manager will then come up with a schedule indicating the time required to complete the task. This planned value is then used in measuring the performance during the entire project. As the work is completed, it is compared to what was planned to show what has been achieved against what was planned.
Again, it is necessary to get the actual costs for the task from the accounting systems of an organization. This way, the cost can be compared to the EV to show an overrun or underrun. With this technique, however, the manager can be able to measure the performance and predict future outcome.
Through earned-value techniques, project managers can with great confidence report on the progress of a task. Consequently, the management will be able to decide on the time as well as the cost allocations soon enough.
Although past performance may be a good indicator to show the expected future performance, the EV is a better tool to predict the future outcome on cost and time to the completion and the estimated final costs. When well implemented, this technique gives the customer more confidence on the contractor because of his ability to manage a task well by giving objective reports on the project.
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