Posts tagged Earned Value Management
Earned Value Management and the ANSI 748 Standard have existed since 1959. For more information, click the image below to be taken to the Office of the Under Secretary of Defense for Acquisition, Technology & Logistics Web Site!
Your company has just won the account of a lifetime. This new multimillion dollar account is projected to keep your company in the black for years to come. However, before you can bask in the glory, management has come to you with the task of designing a cost effective project management system. You accept the challenge with gusto, because you know you have the best EVM software on the market with Primavera's P6 Analytics EVM Software. This software has helped you design several different cost cutting project management systems in the past. Therefore, you know that the software will be able to help you with this task.
The purpose behind Primavera's P6 Analytics EVM software is to enable the user to design a project management system that combines cost and schedule performance. The program answers the age old business question of, “what did I get for my money?” The software is able to do this be assigning an “earn” value to completed projects. The earned value is than compared to the actual and planned costs. This will determine the projects overall performance, predicted costs and performance trends. This format lets you analyze scheduled performance and cost performance under the same terms.
What makes Primavera's P6 Analytics EVM software revolutionary, is the project management materials that come with the program. Working with the different project management materials will help the project leader look at every aspect of the project. When you take such an in-depth look, you will see the entire scope of the project. When you are able to see the entire project scope you will be able to deal with milestones or any problems attached with the project. The software provides you with templates for different scheduling formats, gnat charts, milestone charts, resource charts and summary charts.
This hypothesis has become the basis behind several different direct marketing programs. Using this Primavera's P6 Analytics EVM software philosophy, project managers have been able to determine the true cost for running their programs. This is done by taking the overall cost for running the program, and comparing it against the response and conversion rates. This will let you determine the cost per program. Because of this methodology, direct response is one of the only marketing and advertising channels that can answer the question “what am I getting for my money?”
Mid-State Solutions offers Oracle Primavera Software Training and Consulting for all business types and for all project sizes. Visit Mid-State Solutions to download a free report about the key features and benefits of Primavera's P6 Analytics for your project management needs.
The Basics of Earned Value Project Management
When you are trying to manage a project, you want to do what you can in order to make sure that the costs don't get too high. You also want to be able to get an idea of how long the project will take, and how much it might cost or gain you. One way to determine this sort of information is through earned value project management.
Earned value project management is done through the use of a calculation that uses the planned value and the actual cost in order to determine the earned value of the project. This system was originally developed for the Department of Defense in the 1960s, and is now used by a number of government agencies as well as in the private sector. NASA uses this system, and so does the Defense Acquisition University, the Society of Cost Estimating and Analysis, and the Project Management Institute.
Besides the main equation that is used for this type of management, there are also others that can be used to determine important information that will help you with project management. You can determine whether the project is over or under budget with the Cost Variance equation, and whether it is ahead of schedule or behind schedule with the Schedule Variance equation. There is also an equation to determine the variance of the total cost versus the scheduled cost of the project. You can also use equations to determine how long it is expected to take in order to complete the project, and how much more money it will cost using the forecasting equations.
There are a number of benefits of using earned value project management. Some of these include: better accountability, improving communication, tracking of performance, preventing scope treatment, a way of analyzing profitability, project forecasting, and a reduction in risk.
Although there are formulas that you can use to determine the necessary information for earned value project management on your own, there are also a number of programs you can use to make this easier. Purchasing this type of software will make this a less time consuming and less expensive process, giving you more value for the time spent.
See What Your Company is Earning with Earned Value Management (EVM) Reports
When there are many businesses that provide services to other companies, these businesses, from time to time, may question whether or not accepting a project is actually profitable for a company when all of the labor and materials have been added in. There are ways that a business can track labor hours and materials costs, by putting all of that information into a format that allows the business to see current costs and project future costs requires the use of an Earned Value Management program and of course the generated EVM reports.
EVM reports allow a business to view project information like never before. First of all, during a project the information will be segmented into three parts, projected costs, actual costs and earned value. The earned value is the bottom line for the company, what the company actually earns after all is said and done and all of the labor and materials are actually documented. This is where many companies drop the ball when projecting company earnings, the amount of labor that it takes to complete a job.
Consider this, if the business is a marketing research company and that business accepts a project that presumably is going to require 40 man hours as well as 20 programming hours and the company bids the project for $10k, then with EVM reports the company will be able to track actual hours versus project hours. During the project the bidding company can view this information in a chart that shows up to date information. The bidding company can also have this data converted to graph form in a method that is preferred, such as by day, by week and so on. When the project is done, the company can view the results again in the preferred format.
After the end of the project, the EVM reports can let the bidding company know if there was success in projecting profits, but that is not where it ends. These reports will also help to project the company's needs for the next project that is accepted as well. This will ensure that the company either bids more for the next project (if needed) or finds a way to streamline the internal process so that company gets more bang for the buck (so to speak). Regardless, businesses will find that earned value management can mean a whole lot to a businesses future.
For the most up to date information about EVM Reports, This is the only resource you will ever need EVM Reports
Oracle Primavera Project Manager and Scheduling
Oracle Primavera excels at simplifying the creation of complex schedules. It facilitates the identification of events which are interdependent and the scheduling of the people and resources required by these tasks. Because the software responds to real-world scenarios, Oracle Primavera Project Manager can accommodate uncertainties in time-line duration. It optimizes the scheduling through identification of the critical path and can provide historical information on the relationship between planned and actual project performance. Because Oracle Primavera allows for quick short-term planning, it facilitates communication about responsibilities for the upcoming day, week, month, or whatever time period is needed.
In addition to this ease of communication,Oracle Primavera Project Manager facilitates collaboration between workers or subcontractors by making it possible to easily email entire projects. Industry standard reports are customizable to communicate project status to all project team members. Oracle Primavera eases the budgeting process as well; baseline budgets are easily compared to actual costs. With the correct use of Oracle Primavera Project Manager, on-time and on-budget project completion is virtually guaranteed, as it so readily facilitates the coordination of labor, materials, equipment, and sub-contractors. Because it allows for what-if scenario planning,Oracle Primavera allows users to design their project with their strategic objectives in mind. This integrated construction project management software is essential for exemplary management.