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 evm technique it is an effective and a reliable tool. Read More

Sequence Activities – Tools To Establish Logical Relationships.

While developing the project schedule it is imperative that all project activities that relate to project success are identified. These identified activities are then analysed for relationships that exists among them so that a well-structured and a logically correct network of project activities can be established. A logically correct schedule network can help the project team in concentrating on sequence of activities essential for project success. Read More

Critical Path Analysis – Solved Example.

Arrow Diagram Method (ADM) and Precedence Diagram Method (PDM) are the two methodologies used to construct a project schedule network diagram. ADM uses Activity-on-Arrow (AOA) technique to construct the schedule network diagram where as PDM uses Activity-on-Node (AON). The schedule network analysis methodologies associated with these techniques respectively are Program Evaluation And Review Technique (PERT) and Critical Path Method. Read More

Project Schedule Analysis Using Critical Path Method (CPM)

Critical path of a logically structured project schedule network diagram specifies a list of activities that are in sequence and 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

EVM Techniques To Forecast Project Cost Performance

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 costs. Read More

Project Monitoring Using Cost, Schedule Variance & EVM Performance 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: An Integrated Approach To Performance Measurement

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