Earned Value Analysis - I
In many projects when being managed the top management or project manager either the misses the budget on time and cost. Earned Value Analysis will help you to have control on the same. Any Project Manager would like to know the following facts:
1. Where we are as per Budget?
2. Where we are on Schedule?
3. Where do we stand on our accomplishments?
Earned Value Analysis will help you to understand the current status of the project on the terms of accuracy,consistency and criticalness of the project.
The key factors in arriving at an understanding on financial impact of the project.
- % of Budget Spent
- % of work done
- % of Time Elapsed
But looking at only these aspects will not provide complete picture or state of the project in its entirity, due to lack of its clarity and relationship to the entirity of the project.
Earned Value Analysis is industry standard or practice to Measure Project Progress, Forecast and final cost, provides you the variance in Budgeted and schedule. The key aspect is its provides you numerical indicators for evaluation and taking decisions.
In my next part we will see more about EVA in detail.