Earned Value Analysis

In addition to reviewing the cost and schedule reports, Earned Value Analysis (EVA) allows the project manager to measure how much work was actually accomplished on the project. A "budgeted cost of work performed" is often referred to as an "earned value."

Project must be planned, monitored, and controlled in three main areas: Time

Resources

Work Specifications

To control a project, a manager must be able to identify its components. Work Breakdown Structures help determine which elements of time, cost, and performance need to be controlled.

It is expected that employees working on the same project will provide the project manager with information regarding the project's progress or potential delays.

These six benefits of timely and detailed reports include:

1. Clear understanding of the project's goals

2. Detailed planning to meet the needs of everyone who is involved

3. Understanding how individual tasks relate to each other and to the overall project

4. Detecting potential problems or delays early

5. Taking immediate action if a task is unacceptable or inappropriate.

6. Increasing top management's visibility.

Earned Value Chart

In project management, earned value is a way of estimating how a project is performing in terms of its budget and schedule. In earned value, resources that will have been used at completion are estimated. Earned value charts measure a project's overall performance.

Reporting work performance key measures:

• BCWP - budgeted cost of work performed

• ACWP - actual cost of work performed

• BCWS - budget cost of scheduled work

• STWP - scheduled time for work performed

• ATWP - actual time of work performed