Project Variance Analysis

Monitoring and Controlling of project work requires constant review of planned vs actual data of project work. Earned Value (EVM) project management technique offers mathematical equations for arriving at schedule and cost variance but there are many organizations that do not use earned value management techniques for project monitoring and controlling. Whether a project deploys evm techniques or not, it is necessary that the present performance of the project is compared against 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 an effective and a reliable tool. Read More

Critical Path Analysis – Solved Example

Critical path analysis is the process of identifying the longest path in a schedule network diagram. It not only indicates completeness of project schedule but also helps to ascertain degree of flexibility. Moreover, critical path analysis also reveals the minimum duration required to complete a project. Most of the scheduling programs use PDM technique to construct the schedule network diagram. Hence Critical Path Method (CPM) is the most popular analysis technique. Read More

Critical Path Method (CPM) Project Schedule Analysis

Critical path of a logically structured project schedule network diagram specifies sequencet of activities that need utmost attention of the project manager and the project team. If any activity on the critical path is delayed it will delay the project completion date. Critical path signifies that all activities on the critical path must start and finish as per the schedule dates and no slippages are acceptable. Read More

Forecast Project Cost Using EVM Techniques

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 Variance & Indicators

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 – Concepts Explained

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