Learn More About Earned Value OH

By Betty Powell


Generally, current performance is usually the best indicator about the future performance. Therefore, by using data trend you can forecast the cost or you can schedule overruns in the early stage of a project. For this reason, earned value OH is a comprehensive trend analysis method. Basically, earned value or EV is a technique used to monitor the project plan, the actual work, and the value of the completed work.

The technique represents the duration, as well as the budget that ought to have been expended by assessing the quantity of already carried out at some point. On the contrary, EV is variant from the actual costs incurred and the general budget. This is for the reason that EV places requirements of quantification of the costs on work in progress. In consequence, it usually allows project managers to make comparisons of completed against expected tasks at some point.

Therefore, the project manager will have to agree on the scope of the project, come up with a work breakdown structure, and give budget for every work package. The project manager should then create a schedule with calendar time to show how long the work will take to complete. It is this overall plan or the planned value that is used to measure the project performance in the entire project.

Whenever a work package is completed, project managers usually do comparisons of these completed tasks against the scheduled values in a bid to tell on the attainments given the plans. On the other hand, the real project costs ought to be accessible from the organizational accounting systems so that afterwards, comparisons may be done against its EV and revel the occurrence of any overruns or underruns in the project. The EV, in this manner, presents an objective manner of estimating performance for the project managers and which they can also utilize in predicting future results.

On the other hand, the EV enables the project manager to report the progress of a project with greater confidence, as well as highlight any earlier overrun. As a result, the management team is able to make decisions on cost and time allocation sooner than what would be the case. Basically, past performance is usually a good indicator about the future performance. Therefore, EV is a great tool for predicting the results of a project in terms of completion time, cost to completion, and the final cost expected.

The implementation of systems such as the earned value management usually aids organization in various ways. First, the company benefits from an integration of tasks and their resources once they are authorized and this is through some product-oriented work breakdown structure. Consequently, companies are usually able to coordinate and organize contributions from every section in a bid to integrate the work, schedules, and costs.

Another benefit of EV systems is that it become efficient and effective to manage and report data. Usually, reporting and managing data from different systems can be difficult. However, EV management systems become reliable because there is a central source of data which makes the reporting cycle faster.

Again, the system assists the management in assessing the very critical issues. In consequence, they will be in a position of preventing the overload of information, as well as the risks something may be overlooked is also minimized.




About the Author:



Popular Posts