Earlier we saw what Earned Value Management is, and calculations in Earned Value Analysis. In project management, we use the concept of earned value to measure and predict the progress in the on-going project. It has become very popular now a days as a perfomance measuring method. Lets discuss the advantages and disadvantages of project Earned Value Analysis (EVA) / Management (EVM).
1) EVM keeps the management on their toes. As EVA is done periodically, management tries to make sure that all the project parameters are on track.
2) It is probably the only system used at present which tracks the project in terms of work, time and money.
3) Timely performance measurement makes sure that steps can be taken to the bring project back on track before its too late.
1) While doing earned value analysis, we don't take quality into consideration. It may be possible that our project is scoring high on earned value performance scale, but the quality of work is below par. Quality is an important criteria in any project, and unfortunately it is not considered in EVA.
2) In EVM, we take planned value as the baseline, using which we do our calculations and we make predictions. But there is always an element of uncertainity involved while doing any predictions. Our project may be on schedule when EVA is done, but because of unforeseenable risks it can get delayed at later stages. So basing our assumptions on Planned value is like playing with fire.
3) Cost of implementing Earned value management causes managers to not use it extensively. Generally, a software is required and coordination between different departments should be very good for it to achieve its goal.
4) Time required, to collect all the relevant data pertaining to Actual costs, is a lot in big and diverse projects.
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Earned Value Management Advantages and Benefits
1) EVM keeps the management on their toes. As EVA is done periodically, management tries to make sure that all the project parameters are on track.
2) It is probably the only system used at present which tracks the project in terms of work, time and money.
3) Timely performance measurement makes sure that steps can be taken to the bring project back on track before its too late.
Earned Value Management disadvantages and drawbacks
1) While doing earned value analysis, we don't take quality into consideration. It may be possible that our project is scoring high on earned value performance scale, but the quality of work is below par. Quality is an important criteria in any project, and unfortunately it is not considered in EVA.
2) In EVM, we take planned value as the baseline, using which we do our calculations and we make predictions. But there is always an element of uncertainity involved while doing any predictions. Our project may be on schedule when EVA is done, but because of unforeseenable risks it can get delayed at later stages. So basing our assumptions on Planned value is like playing with fire.
3) Cost of implementing Earned value management causes managers to not use it extensively. Generally, a software is required and coordination between different departments should be very good for it to achieve its goal.
4) Time required, to collect all the relevant data pertaining to Actual costs, is a lot in big and diverse projects.
Copyright © ianswer4u.com
Read More:
Earned Value Analysis terms and Formulae
Earned Value Analysis/Management: Explained
Classification of Numbers
Advertising Slogans List
Real Number Chart
advantages and disadvantages of peer to peer protocol
why ring is better than mesh topology
Great.Very nice.I agree with you.
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