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Often there is discussion on why the EV needs to be matured and what are its benefits - tangible and as well as non tangible. I am making a small attempt to list some its benefits and keen to know your thoughts -

The benefits of improved EVM at enterprise or PMO level:

• Standardised processes for managing project performance on a programme
• Improves transparency and strategic reporting senior management through dashboards
• Improved timeliness and quality of reports through streamlined reporting
• Improved standardisation and automation of reports resulting in reduced costs for report production and improved employee job satisfaction for project controls teams members
• Employee development of competencies
• Produces historical data that can be used for lessons learned and to improve future estimating
• Produces man-hour utilisation and productivity statistics for HR planning
• Improved compliance with corporate financial reporting requirements
• Provides valuable strategic and operational information for improved decision making (high tangibility)
• Reduced costs and increased benefits through improved project and program decision making (low tangibility)
• Reduced reporting cycle times
• Improved communication and standardised processes for project estimating, planning, scheduling, cost control, contracts administration and project accountants.

The benefits of improved EVM maturity at project level:

• Continuous feedback on project work progress and productivity
• Early identification of performance trends and root causes
• Improves transparency and reduces the risk of disputes between owner and contractor
• Improves project forecasting, planning of key resources
• Produces historical data that can be used for lessons learned and to improve future estimating
• Produces quantity statistics, man-hour statistics and other data that can be used by other functions such as safety

Thanks for reading.

Anil Godhawale

Managing Director, Projcon Group