Earned value management ensures projects cost estimates efficiently

 

Earned value management is a management practice generally used in different industries to accurately determine the progress and performance of their projects with an organization's capital outlay to develop that project. It is used widely by both public and private industries to control their project outcomes with the right planning, costing, and project performance measurement.

By planning the entire phases of a project and the effective monitoring of all its aspects, earned value management increases the efficiency of a project to positively influence affirmative outcomes. The earned value management system allows project management teams to monitor the ongoing performance of their project through comparisons of its forecasted performance against its actual performance.

Earned value management is a management system to keep projects on course in their schedules and in line with its planned budgets to avoid cost overruns in its planned budgets. It is a form of project management that accurately measures the overall ongoing performance of a project against its planned schedules and estimated project completion costs. Earned value management can forecast the future performance of a project based on its planned and actual values to allow project managers to adjust the performance of their projects accordingly to stay within its planned guidelines.

Earned value management is a technique generally used by project managers on large-scale projects to evaluate the performance of their ongoing projects against their cost schedules and their variances. It can provide project managers with analysis and forecasted trends of a project to maintain the costing of their projects within its planned budget limits.

The benefits of earned value management allow the management of a project to predict the outcome of a project against its current performance with minimal deviation. With the accurate predictive capability of earned value management, projects manager are provided with the best recommendations of various cost control measures to streamline the performance of their projects.

Earned value management allows project managers to reduce the unknowns in the costing of their projects and provides them with accurate estimated mapping of where the costs of their projects go. It can compare the current costing status of an ongoing project against its estimated baseline and identify critical paths in its costing that may negatively affect the ability of the project to meet its planned cost budgets.

Earned value management provides project administrators with recommendations such as costing rollback recommendations or advanced project resource procurements to allow them to invest in more efficient actions to make accurate decisions on how the project will move to assure positive outcomes.  Earned value management allows project managers when to allocate management reserves for unexpected project increases and ensure that the estimated budget parameters of a project are accurately monitored and controlled throughout the project's lifecycle.

Earned value management provides project managers with recommended guidelines that emphasize the accounting of project accruals, including accurate measurement of the current actual costs of a project so that they can accurately track the ongoing costs of the different levels of a project to measure its progress accurately.