EARNED VALUE IN PROJECT MANAGEMENT
Earned value is a term used in project management to refer to the process of assessing and evaluating the performance and progress of a given project in a purposeful and objective manner. According to Semolic (2009) and Webb (2009), most project managers usually use earned valued due to its ability to combine measurements of scope of a project, schedule of activities and costs incurred during the development and implementation of a project using a single system that is highly incorporated and integrated. Earned value helps in proper management, control and planning during project implementation. In addition, earned value is also preferred to other project management techniques because of its ability to provide accurate forecasts of cost estimates.
According to Fleming and ...view middle of the document...
Through earned value management, a project manager is able to evaluate the performance of the project and take the necessary actions in order to ensure that the project is completed within the stipulated cost and period. As Lock (2007) and Pinto (2010) asserts, earned value management is used to detect variations in the progress of the project thus enable the project manager to take appropriate corrective measures. Earned value management utilizes a combination of various measurements that provides both qualitative and quantitative data for effective decision making during implementation of a project.
I would further assert that earned value management uses trend data to forecast or estimate the future performance of a project. To conclude, I would also assert that earned value is an important management tool that helps project managers to realize the target goals and objectives easily.
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Pinto, J. K., 2010, The Project Management Institute: Project management handbook. San Francisco, Jossey-Bass Publishers.
Semolic, B., January 01, 2009, Project management, development projects and regional restructuring. Senet Project Management Review, 3, (4), 65-71.
Webb, A., 2009, Using earned value: A project manager's guide. Aldershot, Hants, Gower Publishing.