Earned Value Analysis is actually in attempt to do the same activity of Plan vs Actuals but in a more scientific and prudent manner, so that decisions can be taken with lot of confidence and clarity.
The key factors which are handled with respect to Earned Value Analysis are the following:
- Work Scheduled
- Work Accompolished.
Need for EVM:
- Helps in tracking the project status in simple terms
- Typically helps associating non-productive man hours.
- Helps to arrive in Budget Cost of Work Scheduled (BCWS) Vs Actual Cost Work Performed (ACWP)
- Ultimately the project has to be monitored in terms of Cost,Budgeted and completed work.
EVA calculations are derived from measuring the characteristics of projects performance and status. So, whats required to learn and understand EVA ? Not really much some, if you are maintaining timesheets, proper track of projects progress with little formulae you can really achive it.
We will see the method of calculating the same in the next part.