Generally, earned value management (EVM) helps the organization to have a better measure on the performance of how the project is progressing. Because of this, it offers a good insight to an organization. Generally, earned value management system may also provide real benefits that include work integration, schedule, and cost, and gives early warning signs, as well as an index based methods to predict final cost of the project.
The first benefit of EVM system is to ensure that the authorized task and other related resources are usually integrated through a work breakdown structure that is product oriented. As a result, the organization is able to coordinate and organize the contributions of every area of the project to ensure the schedule, the work, and the cost are well-integrated.
Another advantage is that this system ensures that data that needs to be passed across is done so effectively and efficiently. This is due to the fact that EVM ensures that there is a central source of the data hence making the distribution faster and easier. In addition, it provides more time for analyzing and in conjunction the firm is able to focus on crucial issues since EVM assists in management. This helps reduce information clutter or ignoring some issues.
Again, the EVMS systems help to arrive at better decisions. The reasons for this is that analysis on the historical project data may be conducted. Nevertheless, this is usually possible especially in the organizations that maintain consistent reports on different projects over several years. If both the successful, as well as the failed decisions of the past projects can be analyzed, the organization receives more insight about the future projects.
At the same time, it becomes possible to calculate the cost and the schedule variance after the work has just reached a 10% completion on any area of the project. Because of this, the performance of the project and its productivity can be detected in the earlier stages of the project. When the cost performance index or CPI is calculated and found to be above 1, it shows the project is performing well against the budget.
EVM systems also assist in calculation of the schedule performance index, SPI. This is got by division of earned value by planned value. The SPI facilitates identification of schedule problems especially alongside critical path information.
Generally, EVMS objective is to compare the contract work with the budget, and the work statements. These systems are again intended to offer a way to capture the assessments of work in progress versus the planned.
On the other hand, the EVMS helps to relate the cost, the schedule, and the technical performance. Also, the system offer a timely, auditable, and valid information for an active project management action and analysis. The managers also get a level of practical summarization to make the decisions effectively. Due to the many benefits of EVMS it becomes clearly evident that there is so much value in using these systems.
The first benefit of EVM system is to ensure that the authorized task and other related resources are usually integrated through a work breakdown structure that is product oriented. As a result, the organization is able to coordinate and organize the contributions of every area of the project to ensure the schedule, the work, and the cost are well-integrated.
Another advantage is that this system ensures that data that needs to be passed across is done so effectively and efficiently. This is due to the fact that EVM ensures that there is a central source of the data hence making the distribution faster and easier. In addition, it provides more time for analyzing and in conjunction the firm is able to focus on crucial issues since EVM assists in management. This helps reduce information clutter or ignoring some issues.
Again, the EVMS systems help to arrive at better decisions. The reasons for this is that analysis on the historical project data may be conducted. Nevertheless, this is usually possible especially in the organizations that maintain consistent reports on different projects over several years. If both the successful, as well as the failed decisions of the past projects can be analyzed, the organization receives more insight about the future projects.
At the same time, it becomes possible to calculate the cost and the schedule variance after the work has just reached a 10% completion on any area of the project. Because of this, the performance of the project and its productivity can be detected in the earlier stages of the project. When the cost performance index or CPI is calculated and found to be above 1, it shows the project is performing well against the budget.
EVM systems also assist in calculation of the schedule performance index, SPI. This is got by division of earned value by planned value. The SPI facilitates identification of schedule problems especially alongside critical path information.
Generally, EVMS objective is to compare the contract work with the budget, and the work statements. These systems are again intended to offer a way to capture the assessments of work in progress versus the planned.
On the other hand, the EVMS helps to relate the cost, the schedule, and the technical performance. Also, the system offer a timely, auditable, and valid information for an active project management action and analysis. The managers also get a level of practical summarization to make the decisions effectively. Due to the many benefits of EVMS it becomes clearly evident that there is so much value in using these systems.
About the Author:
When you are looking for the facts about an earned value management system, come to our web pages here today. More details are available at http://hv3consulting.com/about.html now.
No comments:
Post a Comment