The important of earned value management

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

Thanks for reading. 

Anil Godhawale
Managing Director, Projcon Group

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