Earned Value Management Essay Example | Topics and Well Written Essays - 500 words

Earned Value Management - Essay Example The most vital component of EVMS is recognizing the real time investment occurring within the project compared to planned value and actual cost. This will illustrate whether the project is exceeding costs and whether it is behind schedule. It is important to recognize that PV is also considered the Budgeted Cost of Work Scheduled, which is imperative for determining earned value. Projects have technical performance aspects (progress) that is related to budget and should be assessed in comparison to actual costs incurred. Planned budget of $180,000 with an actual cost of $200,000 would, without EVMS, be $20,000 over budget. However, EVMS might illustrate that the technical progress started earlier than expected, thus the project is now ahead of schedule and might be more apt to meet PV budget. This is why EVMS is linked directly to cost and performance. My view is that EVMS is a more practical assessment of a project since it takes more into consideration than just costs. It recognizes expert progress based against time schedules, to make a more accurate assessment of project value or potential losses. It is a viable tool for assessing projects because it takes time and talent into consideration (Goodpasture, 2004) along with recognition of costs, something needed for strategic project management in order to gain a broader picture of whether the project is meeting its intended budget and progress