Earned Value Management is a concept that in recent years has achieved a remarkable popularity in the world of project management, but was actually developed in the nineteenth century, when the need to measure the performance of the factories emerged. However, it was not until 1962 that the United States Department of Defense adopted it as a standard methodology for measuring project performance. It originally emerged as an extension of the planning methodology of the time, but became its own methodology in 1967 with the introduction of criteria and control policies cost / time on purchasing systems. These have evolved over time to the present ANSI / EIA Standard 748. During processing, some acronyms have changed and the criteria have been
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Earned Value Management using a uniform to determine the progress and degree of compliance with the plan to date method is set. At present, the technique has Earned Value Management supporters and detractors, both influenced both by previous experiences as comments and influences of other members of the profession. Opponents usually cite the cost and effort to work, and the limited benefit derived from its application. Proponents of the method, cited cost savings for the project, a more rigorous performance analysis, and above all, better communication and control arising from its application. When we talk about Earned Value Management, generally we speak of a methodology while that term is also a key element of this methodology. It is the easiest way to equate physical progress earned value. As its name suggests, it is something that is obtained through an effort. In project management, this value is obtained when the activities are carried out, and allows us to:
Establish a method to determine project status and progress achieved to date on what was previously planned
Provide the basis for analysis of cost …show more content…
There is a direct relationship between Earned Value Management and percentage completed. They could determine the attributes of this as:
A measure of the progress of the overall project or for any sub-element of the project.
A consistent method for the analysis of project achievements and results.
A basis for performance analysis of cost of a project.
To obtain an analysis that we correctly determine the status and performance of the project through Earned Value Management, it is critical to the design of the WBS, since the implementation of Earned Value Management involves measuring what is currently achieved against a baseline. Without baseline, there can be no meaningful action. Prepare a complete WBS for the project assumes that each task it meets the following requirements:
The start and end dates must be defined.
The task should produce a tangible result, whose completion can be assessed objectively.
Each task must be assigned a cost, even if only the labor costs for its realization.
Set the size of the work packages cost accounts. The
Work packages are the smallest of the WBS work units and are grouped into cost accounts. These are usually the lowest level in the WBS where allocation and monitoring of cost are
Earned Value Management using a uniform to determine the progress and degree of compliance with the plan to date method is set. At present, the technique has Earned Value Management supporters and detractors, both influenced both by previous experiences as comments and influences of other members of the profession. Opponents usually cite the cost and effort to work, and the limited benefit derived from its application. Proponents of the method, cited cost savings for the project, a more rigorous performance analysis, and above all, better communication and control arising from its application. When we talk about Earned Value Management, generally we speak of a methodology while that term is also a key element of this methodology. It is the easiest way to equate physical progress earned value. As its name suggests, it is something that is obtained through an effort. In project management, this value is obtained when the activities are carried out, and allows us to:
Establish a method to determine project status and progress achieved to date on what was previously planned
Provide the basis for analysis of cost …show more content…
There is a direct relationship between Earned Value Management and percentage completed. They could determine the attributes of this as:
A measure of the progress of the overall project or for any sub-element of the project.
A consistent method for the analysis of project achievements and results.
A basis for performance analysis of cost of a project.
To obtain an analysis that we correctly determine the status and performance of the project through Earned Value Management, it is critical to the design of the WBS, since the implementation of Earned Value Management involves measuring what is currently achieved against a baseline. Without baseline, there can be no meaningful action. Prepare a complete WBS for the project assumes that each task it meets the following requirements:
The start and end dates must be defined.
The task should produce a tangible result, whose completion can be assessed objectively.
Each task must be assigned a cost, even if only the labor costs for its realization.
Set the size of the work packages cost accounts. The
Work packages are the smallest of the WBS work units and are grouped into cost accounts. These are usually the lowest level in the WBS where allocation and monitoring of cost are