For a project team to accurately calculate the earned value of a project what steps must be taken in the beginning of the project and what must the project manage commit to throughout the project management lifecycle?
Earned value is the total budget percent usually completed at a certain level in the time scheduled to complete a project. It is also referred to as work performed budget cost. Earned value analysis helps managers to measure the performance of any project. Various activities within the project contribute to how the earned value is calculated (Urgilés, Claver, & Sebastián, 2019). They include those of the project manager and the team. There are those that play a crucial role in the implementation period, and others are required all through the project’s management lifecycle.
First, the team must understand the true status of the project. They should have with them what the project requires. This includes the scope, time when the project should commence, work boundaries, among others. Second, a developed structure that outlines the whole task is carried out and put into small tasks that can be easily managed. The structure should have a relationship with the things required for the project. Thirdly, the team must come up with a standard process used to control any changes during project implementation. This is relevant because, during earned value analysis occurrence of any changes must be taken into consideration. The team should also look into any strategy put in place to ensure smooth coordination of all project elements, including the stakeholders. Together with this, the team should make sure that the project plan is correctly in line with the budget.
While throughout the project, the manager is required to focus on several issues. He or she should look into strategies that helped in collecting accurate data that displays the exact project cost. The data gathered is used in the earned value calculation process. The manager should also focus on the remaining plan and cost of the project. This will help him know whether the project will be successfully completed depending on the remaining budget. Lastly, any support on management should be looked into. Any report about the project progress should be received and dealt with without any favourism to ensure a successful analysis of earned value. Therefore, all these steps should be considered when the project manager and his team want to accurately analyze the earned value of their project.
Reference
Urgilés, P. 1., Claver, J. 1., & Sebastián, M. A. (2019). Analysis of the Earned Value Management and Earned Schedule Techniques in Complex Hydroelectric Power Production Projects: Cost and Time Forecast. Complexity, 11. Retrieved August 7, 2020, from https://search.proquest.com/docview/2209520898?accountid=151051