In this time of economic uncertainty, it is more important than ever to ensure that your projects are being managed efficiently and effectively. One key tool for doing so is earned value management (EVM), which can help you to track the progress of your project and identify potential problems before they become time-consuming to fix.
What is Earned value managment?
Earned value management (EVM) is a project management technique that measures the progress of a project by calculating the earned value of work completed to date and comparing it to the actual cost of work completed. This technique helps project managers to identify potential problems early before they become too costly to fix.
EVM is based on three key concepts:
-Earned value
– Actual cost,
– and budget at completion.
Earned value is the portion of the budgeted cost of work completed to date. Actual cost is the actual amount spent to date on the project. Budget at completion is the total budget for the project.
To calculate the earned value, you divide the earned value by the budget at completion. This gives you a percentage that measures how much of the budget has been earned. You can then compare this percentage to the actual cost to see if you are on track or not.
If the earned value is less than the actual cost, then the project is behind schedule and over budget. If the earned value is more than the actual cost, then the project is ahead of schedule and under budget.
Examples of how EVM (Earned value managment) can be used in project management
EVM can be used in a number of ways to help manage a project. For example, you can use it to:
-Measure the progress of the project
– track the budget
– and make decisions about how to course-correct if needed.
EVM is a valuable tool for project managers and can help to ensure that projects are completed on time and within budget.
There are a number of software programs that can help you to track the progress of your project using EVM. One popular program is Microsoft Project, which has a built-in tool for EVM. Other programs, such as Primavera and ProjectManager, also have features for EVM.
Benefits of using EVM
The benefits of using EVM include:
– Improved project visibility:- By measuring the progress of the project and comparing it to the actual cost, EVM provides a clear picture of where the project is at any given time. This allows for early identification of potential problems and timely course correction.
– Increased accuracy in budget forecasts:- The use of EVM helps to improve the accuracy of budget forecasts by providing a more accurate estimate of the amount of work that will be completed by a given date.
– Improved decision making:- EVM helps project managers to make informed decisions about how to best proceed with a project based on the most up-to-date information. This can help to avoid costly delays and mistakes.
Nikhil Kore