Compare And Contrast Earned Value With Planned Value

Compare And Contrast Earned Value With Planned Value What S

Compare and contrast earned value with planned value. What should a project manager infer if earned value is greater than planned value? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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Earned Value Management (EVM) is a vital project management technique that integrates scope, schedule, and cost metrics to assess project performance and progress. Two fundamental components of EVM are Earned Value (EV) and Planned Value (PV). EV represents the budgeted cost of work actually performed, reflecting the project's physical progress at a given point, whereas PV, also called Budgeted Cost of Work Scheduled (BCWS), indicates the authorized budget assigned to scheduled work up to that point (Kerzner, 2017).

Both EV and PV serve as benchmarks for evaluating project performance, but they focus on different aspects. PV sets the baseline for executive and project management to measure progress against scheduled milestones, while EV measures the amount of work completed in terms of budgeted cost. Comparing these two allows project managers to assess whether a project is ahead, on, or behind schedule and budget.

If the earned value (EV) exceeds the planned value (PV), it indicates that the project is ahead of schedule and possibly under budget. This situation suggests that work has progressed more rapidly than initially planned, which can be positive but may also raise concerns about scope, resource allocation, or estimation accuracy. An EV greater than PV typically implies efficient performance, but project managers must verify that the scope and quality are maintained as planned (Harrison & Lock, 2017).

According to Kerzner (2017), the primary inference when EV surpasses PV is that the project is under control in terms of schedule and cost performance. It highlights a favorable condition indicating ahead-of-schedule progress, potentially leading to cost savings. However, managers should also assess if this accelerated progress is sustainable and aligns with project objectives. Regular monitoring ensures that the project remains within scope and quality requirements despite the schedule or cost variances.

References

  • Harrison, F., & Lock, D. (2017). Advanced project management: A structured approach. Gower Publishing.
  • Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and controlling. John Wiley & Sons.

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