Often there is discussion on why the EV needs to be matured and what are its benefits – tangible and as well as non tangible. I am making a small attempt to list some its benefits and keen to know your thoughts –
The benefits of improved EVM at enterprise or PMO level:
– Standardised processes for managing project performance on a programme – Improves transparency and strategic reporting senior management through dashboards – Improved timeliness and quality of reports through streamlined reporting – Improved standardisation and automation of reports resulting in reduced costs for report production and improved employee job satisfaction for project controls teams members – Employee development of competencies – Produces historical data that can be used for lessons learned and to improve future estimating – Produces man-hour utilisation and productivity statistics for HR planning – Improved compliance with corporate financial reporting requirements – Provides valuable strategic and operational information for improved decision making (high tangibility) – Reduced costs and increased benefits through improved project and program decision making (low tangibility) – Reduced reporting cycle times – Improved communication and standardised processes for project estimating, planning, scheduling, cost control, contracts administration and project accountants.
The benefits of improved EVM maturity at project level:
– Continuous feedback on project work progress and productivity – Early identification of performance trends and root causes – Improves transparency and reduces the risk of disputes between owner and contractor – Improves project forecasting, planning of key resources – Produces historical data that can be used for lessons learned and to improve future estimating – Produces quantity statistics, man-hour statistics and other data that can be used by other functions such as safety