Earned value management systems (EVMS) measure and plan labor costs and progress in project management. It helps identify budget overruns early and provides up-to-date information on project progress. EVMS can also help determine worker performance and identify productivity issues.
An earned value management system, commonly called an EVMS, is a method used to measure and plan the labor costs and progress of a project. This type of system is usually used in project management in manufacturing and production. The steps performed in this type of system include budgeting and monitoring work, measuring worker performance, and identifying and implementing steps to resolve recurring problems in the system. An earned value management system helps identify the actual work used to complete a project versus the expected amount of work for the project and identifies the cost of that work. Many government funding organizations require data from an earned value management system to qualify for funding.
Typically, a project manager using an earned value management system first assigns a cost target to a phase of a project. The cost can be in dollars or in business hours. This system helps to identify budget overruns early because it breaks down budget costs into milestones that can be reviewed at different points in a project. Project managers often place these milestones on a timeline and review budget and expenses on a regular basis, often weekly or monthly, to determine project progress. After determining the estimated cost, the project manager begins collecting data on the progress of the project and the manpower used to complete each phase.
This type of system can help a project manager deliver project deliverables on time and at projected labor cost. It also provides the project manager with up-to-date information on the budget and progress of a project. Without an earned value management system that tracks expenses, a project manager may discover too late that a project is hopelessly behind schedule or over budget. When this type of situation is caught early, corrections can be made during later stages of the project to compensate for the shortfall and avoid costly delays. This type of system can also help indicate to a project manager that the project is running behind schedule.
In addition to managing a project budget, an earned value management system can also help determine whether project workers are performing as expected. It can provide clues as to which parts of the project were more difficult and time consuming than expected. Once the project is complete, this data can help the project manager make more accurate future predictions about the work requirements for a similar project phase. This type of data can also help identify and address productivity issues in a workgroup.
Protect your devices with Threat Protection by NordVPN
