EV (Earned Value) Maturity - Its benefits and why it is important

Thursday, 16 February 2017
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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

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