Practical use of earned value for real-time forecasting and control
On 11th September 2012 the Heathrow Chapter of APM held a very successful evening event at the Jurys Inn Heathrow. Attended by more than 50 delegates, the event offered an insight into Earned Value management and the part it plays in the successful completion of projects.
Earned Value is becoming the leading management system for measuring and analyzing project performance. Over the past decade the UK’s largest projects have implemented Earned Value Management Systems, along with hundreds of blue-chip organisations around the world.
By effectively integrating the work scope of a project or programme with the schedule and cost elements Earned Value can provide optimum programme planning and control to support project management decision-making.
As with any management system, success can be attributed to the detailed aspects of its implementation. The presentation covered some specific attributes of Earned Value management including:
- Objectively assessing the realistic percentage complete
- Choosing the right rules of earning for specific tasks
- Measuring achieved efficiency and productivity
- Determining the Estimate at Completion (EAC) and required productivity.
Nick Brown is a Senior Principal Consultant with ARES Software UK Limited, a subsidiary of ARES Corporation. For more than 20 years, ARES has helped owners and contractors effectively manage and control capital projects. ARES is a $150M company with 850 employees around the world. Clients include Crossrail, ADAC, NNL and NASA.