Earned Value Management Challenges

Earned value management system is a robust methodology to integrate schedule, scope, and cost baselines of a project. EVM is an analytical tool that also uses variances to track schedule and cost performance of a project. It further uses efficiency indicators to forecast project health. Though EVM analysis offers numerous benefits, implementing this technique offers some challenges. The following paragraphs enumerates important earned value management challenges. Read More

Earned Value Management Example

Implementation of EVM technique offers some challenges and the most important ones are developing implementation methodology, assessment of percentage work completed, timely collection of work progress data, and availability of actual cost data as organizations have different principles in collection and reporting of actual project cost data. Given the challenges faced with implementation of earned value management technique it is still an effective tool. Read More

Forecast Project Cost Using Earned Value Analysis

Project managers have to face questions on future performance of the project cost. What is the remaining work likely to cost? What is the entire project likely to cost? How much will be over or under budget at the end of the project? Earned Value Management technique has a set of highly effective and proven tools to forecast the cost performance of the project. This post explains how evm formulas can be used to forecast project cost. Read More

Earned Value Management Analysis

In order to ensure that the project is completed on schedule and within the assigned budget, project manager, project team and the management needs to know factors affecting project health and what the future scenario of the project looks like? Earned Value Management methodology is an analytical tool that uses data generated during the course of project execution, the collected data is used to analyse the present state of the project. Read More

Earned Value Management System

EVM as Earned Value Management is popularly known, is a technique used to track the progress and report current status of a project, it is also used to forecast the future performance of the project. EVM is an analytical tool that systematically integrates measurement of cost, schedule, and scope accomplishments on a project. EVM was developed in 1960’s by Department of Defence (DOD) to keep track of defence projects. Read More

Wrong Cost Estimates? – Impact & Solutions

During project execution most of us have dealt with the issue of wrong cost estimates. This issue becomes a serious concern especially when you are working on a fixed price contract, these contracts pose a great risk to project margin as the team has to work with zero escalation of costs until the delivery of the project. While developing the budget for a new project it is an accepted practice to refer to costs incurred in a previous similar project. Read More