A method that allows the project manager to measure the amount of work actually performed on a project beyond the basic review of cost and schedule reports.
Earned Value Analysis Requirements
In order for the Earned Value Analysis to be accurate, a good solid project plan must be created. In today’s marketplace it seems as if all clients are from the great state of Missouri. That is to say, Missouri’s nickname is “The Show Me State”. If I had a dollar for ever time I heard a client say “Plan, you don’t need a plan, I need to see work being done!” well, I would be deep in financial riches! What is the old saying? “Without a plan, any route will do”. That temperament or environment is not conducive to project management and reporting project status to stakeholders. The project plan, especially the Scope Statement is the foundation to solid earned value practice.
In Earned Value Management, unlike in traditional management, there are three data sources:
- – the budget (or planned) value of work scheduled
- – the actual value of work completed
- – the “earned value” of the physical work completed
Earned Value takes these three data sources and compare them with the budgeted value of work scheduled with the “earned value of physical work completed” and the actual value of work completed. Please click here to reach out to us If our are seeking to establish an Earned Value Management Systems for your Capital Project.