Earned Value Management techniques are an essential part of delivering a project on time and on budget. It is a key building block to a well run project.
EVM should not be a time wasting task, but can easily become one if your analysis is not up to date.
Where to Start
Begin by quantifying accomplishments through predefined methods at a preset time. Internally review the project and identify detailed elements that have been completed. A common formula for defining the Earned Value (EV) is calculated as the percent complete times budget at completion.
EV = % complete * BAC
Compare the Planned Value (PV) to the EV on a chart for a quick snapshot on the progress of the project. The PV is your baseline and variances from that figure will be instantly noticeable. Add in the Actual Cost (AC) at specific time intervals and your graph now encapsulates the planned versus actual project flow.
Setting this up prior to the beginning of a project gives you an additional tool to track progress and compare preset conditions to actual results.
Free Download for EVM
Quick Project Snapshot
The Simple Picture
EVM tells a significant story. One you understand the basic jargon and concepts EVM will give you a visually simple picture at different intervals of your project tracking. EVM can flag potential problems and give you the opportunity to address them before the project veers off track.
By weighting specific intervals of your project you can easily compare your PV to your EV. If you find a schedule or cost variance with this tool, take advantage of the opportunity to get back on track. Remember that EVM does nothing to establish or track the quality of your project, you must have different measures in place to gauge this.
Project Tracking
The intervals should come directly from your Work Breakdown Structure so that your reports coordinate with each other.
As indicated in the graphs above, EVM is a useful tool in project tracking. Without the benefit of EV you run the risk of being completely unaware of longer projects getting off track before it's too late and rework will become necessary.