Emerging Managers
Ms. Garima Soni MBA, Batch 2020-2022, IBS Hyderabad, India.
Earned Value Analysis Earned Value analysis is a method of performance measurement. Earned Value is a program management technique that uses “work in progress” to point what is going to happen to figure within the future.
er run, the project management team may execute a value engineering program for cost reduction either reducing scope and quality in some sections of the project or providing an additional budget to cover overrun cost. Similarly, for time overrun cases, they may plan some programs like fast-tracking or time Earned Value is an enhancement over traditional crashing for time reduction. accounting progress measures. Traditional methods focus on planned expenditure and actual Parameters costs. Earned Value goes one step further and examines actual accomplishment. This gives EVA uses cost because of the common measure of managers greater insight into potential risk areas. project cost and schedule performance. It allows the With a clearer picture, managers can create risk measurement of cost in currency, hours, workermitigation plans supported by the actual cost, days, or the other similar quantity which will be schedule, and technical progress of the work. It is used as a standard measurement of the values an “early warning” project management tool that associated with project work. EVA uses the permits managers to spot and control problems subsequent project parameters to evaluate project before they become insurmountable. performance: It allows projects to be managed better – on time, Budget at Completion (BAC) on budget. Earned Value Management System isn't a selected system or toolset, but rather, a The original budget of the project. group of guidelines that guide a company’s management control system. In the case of cost ov- Planned Value (PV)
KAIZEN’S OPERATIONS & RESEARCH ENTITY
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