Earned Value Management
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Earned Value Management
Objectively, earned value management (EVM) is a project management technique that is used to measure the performance and progress of a project. This technique can blend the essential elements of any project management cycle that include scope, time and cost (Solanki, 2009). It provides an overview of the immediate issues within the project, consequently allowing managers to design corresponding mitigating systems. Most EVMS perform similar tasks although may change depending on the project under consideration. Among the common goals of any EVM includes relating time allocated budgets to determine tasks, providing an avenue where work progress may be assessed in relation to the baseline plan, allow managers the opportunity to make credible and concise decisions through providing valid and auditable information regarding a project. The three elements of any EVM are included in the five guidelines, which include organization, planning, scheduling and budgeting, accounting aspects, and analysis and management reports and data maintenance.
Implementing
EVMS prove to be effective in several
ways. It improves the planning process as well as creating a clear definition of the scope of work (Solanki,
2009). In incorporates the technical aspect of
time and costs to realize the project objectives. Nonetheless, EVM results can
be put to good use and suffice as evidence
during an audit. EVM tends to compare the overall quantity of work against the
task completed. The determined outcomes prove effective when determining the
cost variance as well as the schedule variance. The schedule variance then
proceeds to issue a difference in the quantity of work completed and the amount of work
that needs to be complete. These calculations prove useful during an audit while determining the
status of the project as well as the scope of progress (Solanki, 2009). Furthermore,
the outcomes offer an auditor the opportunity to account for any delays in the
project as well as issue recovery strategies in case of project failure.
References
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Solanki, P. (2009). Earned value management: Integrated view of cost and schedule performance. New Delhi: Global India Publications.
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