What are the Benefits of Earned Value Management?
Let's examine a few of the most important benefits of using an EVM.
Aids in planning realistic projects:
Project managers must invest a lot of time in coming up with a manageable budget and an achievable timeline if they want to benefit from EVM. Managers must take into account potential difficulties when mapping out the project's course from beginning to end and allocating tasks to their team. Establishing the project plan, including the schedule, budget, and scope, is necessary before integrating EVM into the planning process.
This baseline can be used as a benchmark by managers to gauge how well a project is performing over time. EVM offers a clear image of where your project is now compared to where it ought to have been according to plan. Additionally, it displays the actual work done in comparison to the planned timeline. As a result, EVM offers useful information that project managers can use to judge whether the original plan was feasible.
Obtain real-time awareness of centralized data
To monitor project in real time, the project manager must have total enterprise visibility. Managers can use EVM to track performance measures using effective management tools. It integrates timetables and budgets into the system and uses Gantt charts to deliver useful Intel on reports and analytics. As a result, earned value management assists in measuring progress at each phase and milestone.
You can speed up the process by assigning controllable amounts of tasks to your teams based on time and cost considerations. When there is a variance, project managers are notified so that they can take the necessary preventative measures to get the project back on track. Once project execution begins, EVM assists in showcasing our errors based on task dependency.
Check the accuracy of the budget and schedule.
Throughout the course of a project, surprises can happen at any time. Project specifications, client preferences, and unforeseen obstacles like the COVID 19 pandemic can all change. As a result, the project plan may differ from the schedule and budget. What occurs when you discover after having completed 80% of the venture that you used up all of the budget but still met the deadlines?
You can compute and apply timetable deviations SC and expense variances CV, as mentioned above, to prevent these partial failures. Every milestone should be measured to help limit losses. Taking preventative measures to lower the CV level also helps.
Recognize risks and take quick action
Project stakeholders are informed of issue areas that could endanger the project throughout its life cycle as part of the EVM process. It gives them the opportunity to make changes in advance to stop the project from deviating from the initial plan. Adjusting scope of the project and budgets, acquiring more assets, investing in superior technologies, and other changes are a few examples of these modifications.
Additionally, it aids in preventing the recurrence of issues that obstruct advancement. When issues arise, earned value management assists in identifying them. It also makes it possible to foresee risks related to the project's budget and schedule. In light of this, managers can step in and take proactive measures before having experienced any setbacks.
Increases responsibility and drive:
Earned value analysis allows project managers to respond to problems more quickly because it provides them with greater control and visibility over the activities that are involved. Employees must track their time as a component of EVM and report their advancement in contrast to the baseline. It motivates those who are slowing down to pick up the pace and match their colleagues' outcome, and it motivates top performers to keep up the good work.
Metrics of performance As previously stated, SPI and CPI show whether your proposal is on time and within budget. For example, recognizing that half of the project is completed will keep them motivated and excited for the product launch. During portfolio analysis, this clarity assists stockholders in deciding which initiatives have a better chance of success.
All the above discussions are associated with EVM certification If you are really interested in a EVM career, then join the EVM course offered by Team Academy, Doha, Qatar. We assure you 100% quality in your EVM course. Our outstanding quality in training makes you stand out as a highly skilled professional.
To get certified in EVM from Team Academy, kindly refer to the below link.