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 computing this estimates, the task completed is often compared to the figures obtained at the beginning of the task. This is because it is not possible to get the true measure of how the task has progressed if such progress is to be reported based on the time elapsed. For example, a project to be completed in 12 months cannot be reported as 50% complete at 6 months. The reason is that elapsed time alone does not indicate whether the project is ahead or behind 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.
A project manager needs to agree on what the project covers, have a breakdown of the work, and allocate a budget for each work package. He or she will design a schedule showing the time needed to complete that task. The planned value is, however, used to measure the performance of the entire project. While the task progresses, it is often compared to the planned estimate to know what has already been achieved to what was planned.
It is also important to have the actual costs obtained for the particular project from the accounting system of the organization. This is because such cost is usually compared with the EV to indicate either an overrun or an underrun. Through this technique, a project manager is able to measure performance as well as predict future outcome.
A project manager can be able to give the progress of a task through earned value with greater confidence. This gives the management the ability to make decisions relating to time and cost sooner than it would otherwise be.
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 computing this estimates, the task completed is often compared to the figures obtained at the beginning of the task. This is because it is not possible to get the true measure of how the task has progressed if such progress is to be reported based on the time elapsed. For example, a project to be completed in 12 months cannot be reported as 50% complete at 6 months. The reason is that elapsed time alone does not indicate whether the project is ahead or behind 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.
A project manager needs to agree on what the project covers, have a breakdown of the work, and allocate a budget for each work package. He or she will design a schedule showing the time needed to complete that task. The planned value is, however, used to measure the performance of the entire project. While the task progresses, it is often compared to the planned estimate to know what has already been achieved to what was planned.
It is also important to have the actual costs obtained for the particular project from the accounting system of the organization. This is because such cost is usually compared with the EV to indicate either an overrun or an underrun. Through this technique, a project manager is able to measure performance as well as predict future outcome.
A project manager can be able to give the progress of a task through earned value with greater confidence. This gives the management the ability to make decisions relating to time and cost sooner than it would otherwise be.
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.
About the Author:
If you are looking for information about earned value OH locals can come to our web pages today. More details are available at http://hv3consulting.com now.
No comments:
Post a Comment