In project management, gut feelings and guesswork can only get you so far—eventually, you need cold, hard numbers to tell you if you’re winning or sinking. Earned Value is a method of calculating project status. It does this from two perspectives: Time (schedule) and Cost. After applying the earned value method the project manager will know whether the project … [Read more...]
Project management can feel like navigating a maze—tight budgets, shifting timelines, and endless variables vying for your attention. How do you know if you’re truly on track? Earned Value Analysis (EVA) is a powerful method that blends cost, schedule, and performance into a clear picture of project health. Whether you’re a seasoned PM or just dipping your toes into … [Read more...]
I'm continually amazed at how many project managers, even in large, important projects, do not know the true status of their project until near the end, when there is little that can be done to ensure they finish on time or budget. The proper time to rigorously track project status is at the beginning, not at the end. This is when project risk can be managed and … [Read more...]
Let’s face it: managing a project can sometimes feel like a frantic dash to put out fires. A missed deadline here, a budget overrun there—too often, project managers end up reacting to chaos instead of steering the ship. But here's the truth: Putting out fires is rarely a good project management strategy. It’s exhausting, inefficient, and leaves little room for real … [Read more...]
Change is the only constant thing in life. - Heraclitus, Greek Philosopher Human nature is such that, if you ask me to do something for you, you expect me to have a plan and, following your approval of that plan, to adhere to it. That's why project management involves the development of a project management plan, which includes the budget, schedule, stakeholder … [Read more...]
Everybody has heard of a project whose cost spiralled out of control. Even big megaprojects where the difference measures in the billions are not immune to cost pressures. In fact, they are even more likely to go over budget. What is the official project management methodology for controlling project costs? To answer this question, we consult the … [Read more...]
The earned value method is the project management standard for cost control during a project. Whether you are a practicing project manager or studying for the PMP exam, you need to know how to calculate earned value. Fortunately, it involves nothing more than basic high school math. The more difficult part is knowing what each of the variables means and how … [Read more...]
Earned Value is a method used by project managers to calculate the current project status and predict future project performance. In this post we will outline each earned value formula. Planned Value (PV) Earned Value (EV) Actual Cost (AC) Schedule Variance (SV) Schedule Performance Index (SPI) Cost Variance (CV) Cost Performance Index (CPI) … [Read more...]
Poor project cost management is one of the easiest ways to make a project go awry. Hence, good project management requires a firm grasp on the concepts and techniques in project budgeting and cost control. Thankfully, the Project Management Body of Knowledge (PMBOK) gives us a strong foundation in this area. Project Cost Management is the fourth of 10 project … [Read more...]
The real benefit of the earned value method is in the early warning signal it provides. In my previous life at a large engineering company, I saw many project managers get to a monthly billing cycle before they realized the project was behind, and even then they would rationalize it by deciding their project team was going to be more efficient in the next cycle. … [Read more...]
