ipl-logo

Earned Value Analysis Project Management

1835 Words8 Pages

Earned Value analysis is a method of performance measurement. Earned Value is a program management technique that uses “work in progress” to indicate what will happen to work in the future. Earned Value is an enhancement over traditional accounting progress measures. Traditional methods focus on planned accomplishment (expenditure) and actual costs. Earned Value goes one step further and examines actual accomplishment. This gives managers greater insight into potential risk areas. With clearer picture, managers can create risk mitigation plans based on actual cost, schedule and technical progress of the work. It is an “early warning” project management tool that enables managers to identify and control problems before they become insurmountable …show more content…

It enables managers to close the loop in the plan-do-check-act management cycle (PMI, 2005). Earned Value Management has become the most commonly used method of project performance measurement (Chen and Zhang 2012). Practitioners also refer to Earned Value Management concept as Earned Value Project Management, Earned Value System or Earned Value Analysis, but there is no much difference between these terminologies. Earned Value Management offers the project manager a tool to timely evaluate the general health of a project along the life of the project. Particularly Earned Value Management has been used to estimate cost and time to complete, identify cost and schedule impacts of known problems, accurately portray the cost status of a project, trace problems to their sources, portray the schedule status of a project, provide timely information on projects and identify problem areas not previously recognized (Kim and Duffey 2003). The description and derivation of Earned Value Management elements have been comprehensively described in many sources. (PMI, 2005) classifies the terminology into two categories: key parameters of Earned Value Management including Planned Value, Earned Value and Actual Cost and Earned Value Management measures (variances, indices and forecasts). Additionally the evolution of Earned Value Management concepts raised …show more content…

Determining Earned Value is a managerial accounting technique. Measuring Earned Value as work progresses is an essential project management technique”. No major differences in stating the Earned Value concept according to the available references in that regard as (Ernst, 2006) also touched on the basic concept of the Earned Value Management as “A management tool that integrates the technical, cost and schedule parameters of a project. During the planning phase, an integrated baseline is developed by time phased budget resources for defined work. As work is performed and measured against the baseline the corresponding budget value is “earned”, consequently Earned Value metric cost and schedule variances can be determined and analyzed, from these basic variance measurements the project manager can identify significant drivers forecast, future cost and schedule performance and construct corrective action plans to get the project back on track. Earned Value Management therefore encompasses both performance measurement (i.e. what is the program status) and performance management (i.e. what we can do about it). Earned Value

Show More
Related
589 Words | 3 Pages

Usually, budgeting is based on tangible cost of products purchased but during this project the main costing was based on man hours. Even the cost benefit analysis of the project was based on man hours involved in the current implementation versus what it would be with the new system in place. - Formative and Summative Assessment – Quality Assurance was a new concept that I learned is critical to the successful implementation of the project. I was not entirely satisfied with this part of the project because there is always scope for more quality control measures but the project was limited by time and cost. For example, peer reviews of code could have help bring up the quality of the coding practices of developers but there was no time to implement that in this project.

Read More
1008 Words | 5 Pages

PROJ 586: Project Management Systems Week 5 Risk Management Plan Name: Ra. Jayapandiyan Email: rajayapandiyan@gmail.com Instructor: Mr. Terry Printz February 7th 2016

Read More
365 Words | 2 Pages

Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill

Read More
1346 Words | 6 Pages

Final Project Assessment and Intervention: Dan Dunne from Half Nelson The diversity and scope of individuals’ experiences with addiction is infinite; addiction targets all walks of life, regardless of age, gender, socioeconomic status, etc. Addiction itself manifests in a variety of contexts in a person’s life, including inter- and intrapersonal function, employment, social, and environment, and observable changes can offer clues and insights into progression, severity, and levels of needed treatment (Wahler & Otis, 2014). To properly aid in the treatment and recovery of individuals with substance use disorders, counselors must employ a variety of effective tools and insights, to effectively align an individual’s addiction with a complete diagnostic

Read More
592 Words | 3 Pages

This step provides the project manager and project team to look back and evaluate the risk involved, assumptions, and remedies for those risks. Similar was the case with the Space Shuttle Challenger. McDonald mentions that the engineering team at NASA gave the warning based on their last mission, where the temperature was the major issue. The management team ignored the warning and put the stakeholder's satisfaction above the safety of the

Read More
478 Words | 2 Pages

For my Performance Task One project, my group members Abbey Glancey, Rachel Lambert, Addie Hinkle and I researched how video games effect the growth and development of children in the United Stated Of America. Our subtopics included how video games effects a child 's brain, health, social and physical behavior, and education. I learned way more than I expected while researching this topic. I approached the process of researching by taking what I learned from the previous time doing this project and applying it to this new topic.

Read More
551 Words | 3 Pages

War has completely changed ever since the year 1945. The same strategies we used on previous battles are not that useful anymore. To this day the United States and Russia Superpowers, countries with global control; still debate about the use of this mass destruction weapons(1); that can help secure victory in an emergency but also can have extremely terrible consequences not only to the environment but also to the human race. During a race against Nazi Germany to create the first atomic bomb the United States, became the first country to successfully use uranium to create a huge radioactive explosion; Used two of their first bombs on Hiroshima and Nagasaki taking or injuring an estimated 279,000 people*2. Ending the war but taking many families

Read More
1486 Words | 6 Pages

Success varies between projects because they differ in size, complexity, and uniqueness and therefore the criteria used to measure success will vary as well. Individuals and stakeholders may interpret project success in various ways and the industry itself lends further variation on viewpoints about performance (Davis, 2017). The opinions of success, and how important success dimensions are, vary ‘by individual personality, nationality, project type, and contract type’ (Mir & Pinnington, 2015). To accommodate for various projects a high level success framework includes project efficiency, customer impact, team impression, business requirement accomplishment, and planning for the future (Mir & Pinnington, 2015). Determining whether the targeted

Read More
924 Words | 4 Pages

Apply the concept of VRIN to analyse its value-creating ability. All resources that an organization has may not have strategic relevance. Only certain resources are capable of being an input to a value creating strategy which put the organization in a position of competitive advantage. Great brand identity gives Disney's parks an edge over its competitors. Applying the concept of VRIN (valuable, rare, inimitable, non-substitutable) on Disneyland theme parks- • Valuable-

Read More
674 Words | 3 Pages

Risk responses are guided by our established risk tolerance. In setting these goal one of which was to finish six months eelier than the project actual did we all see the project management description of coming in on time and budget with projects.

Read More
1170 Words | 5 Pages

Project Concept and Strategy a. Was the Woody 2000 project well-conceived? Give reasons for your opinion. Ans. When a project is to be conceived, it broadly needs its planners to: - Lay down the objectives of the objectives of the project - Lay down the strategies, to achieve the objectives - Communicate these objectives to the staff - Break down the strategies into work activities - Assign members who would work on each of the activities - Decide the activities that will need outsourcing, and account for them - Assign timelines to each of the activities - Assign performance indicators/measurables to each of the activities - Estimate the cost of each activity, and thus the cost of the total project - Take into account the contingencies - Lastly,

Read More
180 Words | 1 Pages

A basic and principle of the organizational management is the performance measurement. To successfully measure the performance of an organization, it is essential to identify and focus on the key areas of the business that contribute in the success and improvement of the organization. These indicators are called Key Performance Indicators (KPIs) (Invest Northern Ireland, n.d.) “KPIs are an actionable scorecard that keeps organizational strategies on track” (Petersen, 2012), and monitor continuous progress toward predetermined organizational goals (Bortniak, 2012).

Read More
1449 Words | 6 Pages

By being fully aware of its function and implications is an important aspect of the project manager’s role and responsibility. The triple constraint is meant to be an asset to the project manager’s arsenal and should not be viewed as a hindrance. This assignment has shown about how and the importance of comprehensive evaluation on the Triple Constraint (Time, Cost, Scope) in a project under uncertainty situation. We introduce an index called as Project Reliability.

Read More
1327 Words | 6 Pages

Every project manager potentially faces countless mistakes that affect projects, cause delays and, in some cases, contribute to complete project failure. Here are a few common mistakes in project management and how to avoid them: 1. Employing a Project Manager Lacking Experience Knowledge of running status meetings, developing a project plan, managing risks and issues, and dealing with stakeholders is crucial to the successful outcome of the project. Solution:

Read More
1523 Words | 7 Pages

The training set up by performance management empowers staff to understand their strengths and weaknesses, know what job responsibilities they are fit for, and find a company-specific position such as a cleaner, cashier or referee who serves Starbucks in a different role.  Reward management  The assessment reports will allow Starbucks to reward employees for their performance, so that employees feel that they are valued by Starbucks paid the time and effort is worth it. After giving the reward, employees have a sense of belonging to Starbucks and therefore work more earnestly and the morale of the employees is improved.

Read More

More about Earned Value Analysis Project Management

Related Topics

Open Document