The Most Common Method For Determining Project Progress

The Most Common Method For Determining Project Progress And Ultimatel

The most common method for determining project progress and, ultimately, project success is called Earned Value. The attached PowerPoint presentation explains this quite well using an example to help you understand it. The complete the exercise attached. It asks you to determine the earned value of a few projects at certain points in their progress. One of the most tried and true methods of approaching this questions is to first draw a diagram of where the project was planned to be at this particular point in time. That will help you detrmine what was plannned so that you can then check for variance against what actuallly happened.

Paper For Above instruction

Project management is a complex discipline that involves numerous methodologies to ensure projects are completed successfully within scope, time, and budget constraints. One of the most widely used techniques for assessing project progress and determining its success is Earned Value Management (EVM). This method allows project managers to objectively measure performance by comparing planned progress with actual accomplishments and the associated costs.

Earned Value Management integrates three critical data points: the Planned Value (PV), the Earned Value (EV), and the Actual Cost (AC). The Planned Value, also known as Budgeted Cost of Work Scheduled (BCWS), represents the budgeted cost of work scheduled to be completed by a specific time. The Earned Value, or Budgeted Cost of Work Performed (BCWP), reflects the budgeted amount of work actually completed at that point. Lastly, the Actual Cost, or Actual Cost of Work Performed (ACWP), indicates the real expenditure incurred for the work performed.

Implementing EVM begins with creating a detailed project baseline that includes the scope, schedule, and budget. The baseline functions as the standard against which performance is measured. Visual tools such as project timelines and Gantt charts are often used to illustrate the planned progress at various points. By plotting these points, project managers can determine planned progress milestones, which serve as benchmarks for ongoing evaluation.

Once the baseline is established, project progress is monitored. At any given point, the actual work completed is compared with the planned work. The variance between planned and actual performance is analyzed to detect delays or cost overruns early. For example, if the EV is less than the PV, the project is behind schedule; if the AC exceeds the EV, the project is over budget. These variances are crucial indicators for corrective actions.

Applied practically, project managers draw diagrams or charts to visualize whether the project is tracking according to schedule and budget. Such visual representations facilitate quick identification of issues. For instance, a project timeline might show that by a certain date, 50% of the work was planned to be completed, but only 40% is achieved, indicating a delay. Likewise, costs may have exceeded planned expenditures, flagging potential budget problems.

In conclusion, Earned Value Management provides a comprehensive approach to measuring project performance by integrating schedule and cost data. It allows project teams to make informed decisions by offering real-time insights into project health. Proper implementation requires meticulous planning, consistent monitoring, and the ability to interpret variances effectively. Through these processes, project managers can steer their projects toward successful completion and meet stakeholder expectations.

References

• Fleming, Q. W., & Koppelman, J. M. (2016). Earned Value Project Management (4th ed.). Project Management Institute.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
• Anbari, F. T. (2003). Earned Value Project Management Method and Extensions. Project Management Journal, 34(4), 47–56.
• Kloppenborg, T. J., Anantatmula, V., & Wells, K. (2019). Contemporary Project Management (4th ed.). Cengage Learning.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Bannerman, M. (2008). Managing Cost Overrun in Projects. Journal of Construction Engineering and Management, 134(5), 352–358.
• Christensen, J. F. (2007). The Power of Earned Value Management. Journal of Management in Engineering, 23(4), 170–174.
• Meredith, J. R., & Mantel, S. J. (2011). Project Management: A Managerial Approach. Wiley.
• Winefield, A. H. (2018). Strategic Project Management. Routledge.
• Haughey, D. (2012). Guide to Earned Value Management. Projectsmart.