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In project management, earned value (EV) is a technique used to estimate the performance of a project in terms of a budget and the schedule of the project. This technique is normally used in order to get an estimate of resources which will have been used upon the completion of a project. Through earned value OH, project managers can get the estimate of the resources that will be used to complete the project.
When doing such estimates, the figures arrived at in the onset of the project is placed against the figures at completion. This is since it may never be possible to arrive at and report an exact measure pertaining to the progress of the tasks versus the time already consumed. For instance, it is not possible to state a 50% completion at six months for a project scheduled to run over 12 months. This is for the reason that the duration alone never defines the overrun or underrun in the 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 work is usually planned, scheduled, and budgeted in time and planned value increments, contributing to a performance measurement baseline. The gained value offers an objective measurement of an accomplished work on a project. Through this technique, the management is able to compare the actual completed work against the planned work to be completed. The difference between the planned and the earned work is known as schedule variance.
Project managers ought to be in agreement concerning the scope of the project, have the work broken down and then allocate the budget to all the work packages. They can also design schedules that depict the duration that a task ought to take. This planned value will be used when measuring the accomplishment of the whole project. While the tasks are in progress, they are usually evaluated against the planned estimates in order to ascertain what has been accomplished versus the planned.
Again, it is necessary to get the actual costs for the task from the accounting systems of an organization. This way, the cost can be compared to the EV to show an overrun or underrun. With this technique, however, the manager can be able to measure the performance and predict future outcome.
Through the earned value technique, a project manager is also able to report progress of a task with greater confidence. As a result, the management is able to make decisions on cost and time allocation sooner.
Although the previous performance can be good indicators that depict what is expected in the future on performance, EV is the better tool relied on to forecast future outcomes relating to time and cost to completion as well as the projected final costs. This technique gives customers some confidence in dealing with a contractor on their ability to effectively run tasks by providing objective reports concerning the project.
When doing such estimates, the figures arrived at in the onset of the project is placed against the figures at completion. This is since it may never be possible to arrive at and report an exact measure pertaining to the progress of the tasks versus the time already consumed. For instance, it is not possible to state a 50% completion at six months for a project scheduled to run over 12 months. This is for the reason that the duration alone never defines the overrun or underrun in the 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 work is usually planned, scheduled, and budgeted in time and planned value increments, contributing to a performance measurement baseline. The gained value offers an objective measurement of an accomplished work on a project. Through this technique, the management is able to compare the actual completed work against the planned work to be completed. The difference between the planned and the earned work is known as schedule variance.
Project managers ought to be in agreement concerning the scope of the project, have the work broken down and then allocate the budget to all the work packages. They can also design schedules that depict the duration that a task ought to take. This planned value will be used when measuring the accomplishment of the whole project. While the tasks are in progress, they are usually evaluated against the planned estimates in order to ascertain what has been accomplished versus the planned.
Again, it is necessary to get the actual costs for the task from the accounting systems of an organization. This way, the cost can be compared to the EV to show an overrun or underrun. With this technique, however, the manager can be able to measure the performance and predict future outcome.
Through the earned value technique, a project manager is also able to report progress of a task with greater confidence. As a result, the management is able to make decisions on cost and time allocation sooner.
Although the previous performance can be good indicators that depict what is expected in the future on performance, EV is the better tool relied on to forecast future outcomes relating to time and cost to completion as well as the projected final costs. This technique gives customers some confidence in dealing with a contractor on their ability to effectively run tasks by providing objective reports concerning the project.
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