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Important Information On Earned Value OH

By Joyce Morris


Earned value (EV) is used in project management to estimate performance of a task in relation to the budget as well as the schedule of that project. The technique is often used to get the estimate of resources that might be used by the time the project is completed. With earned value OH, your project manager is able to have an estimate of resources to be used to finish the project.

When doing such estimates, the figures arrived at in the onset of the project is placed against the figures at completion. This is since it may never be possible to arrive at and report an exact measure pertaining to the progress of the tasks versus the time already consumed. For instance, it is not possible to state a 50% completion at six months for a project scheduled to run over 12 months. This is for the reason that the duration alone never defines the overrun or underrun in the schedule.

This technique gives a better measure of the progress made. When used, you get credit for the work done upon the completion of the project. Each task is usually assigned a certain percentage such that the whole task adds up to a hundred percent. As every task is completed, it is added as the EV.

All work is usually planned, scheduled, and budgeted in time and planned value increments, contributing to a performance measurement baseline. The gained value offers an objective measurement of an accomplished work on a project. Through this technique, the management is able to compare the actual completed work against the planned work to be completed. The difference between the planned and the earned work is known as schedule variance.

A project manager needs to agree on what the project covers, have a breakdown of the work, and allocate a budget for each work package. He or she will design a schedule showing the time needed to complete that task. The planned value is, however, used to measure the performance of the entire project. While the task progresses, it is often compared to the planned estimate to know what has already been achieved to what was planned.

Again, it becomes important that one has the definite costs on tasks from accounting systems within an organization. In this way, the costs may be evaluated against the EV to depict an under-run or an overrun. However, a manager may measure the accomplishments and even predict future outcomes using this technique.

Through the earned value technique, a project manager is also able to report progress of a task with greater confidence. As a result, the management is able to make decisions on cost and time allocation sooner.

Although the previous performance can be good indicators that depict what is expected in the future on performance, EV is the better tool relied on to forecast future outcomes relating to time and cost to completion as well as the projected final costs. This technique gives customers some confidence in dealing with a contractor on their ability to effectively run tasks by providing objective reports concerning the project.




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