Monday, March 12, 2007

Earned Value Analysis

On 5th of March, ACS - PM SIG (Project Management Special Interest Group) had another session. This time, the topic was Earned Value Analysis. It was an interesting, fairly unfamiliar topic for most of us. The crux of it is to measure the earned monetary value during a project life cycle (Not at the end) and estimate the chances of doing financially well by the time you finish the project.

The presenter recommended following site for further reading, which explains the concepts in a simple manner.

www.goldpractices.com/practices/tev

Apart from this, a simple Google search could give more resources as well.

Personally, I think this more appropriate for small scale projects run by one or few people, for instance, Contractors, who offer services could very well use this to measure where they are during the project, and do an estimate on the future. Important thing about it is, it provides with a Lead indicator (indicates something regarding the future and not about the past as Lag indicators does). But for large scale projects, where financials are tightly bound to either time or milestones, I am not sure whether it will be that useful. However, its' general prediction is interesting to know though.

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