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Q4-8DQ

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Operations And Supply Chain Management
Found in: Page 100
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

Why is it important to use earned value management (EVM) in the overall management of projects? Compare to the use of baseline and current schedules only.

Earned Value Analysis (EVA) is an approach that permits a project leader to quantify the quantity of activity completed on a project that goes beyond a simple examination of the timeline as well as expense information. EVA gives a mechanism for measuring the project's success based on the amount of progress that has been made.

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Step by Step Solution

Important to use earned value management (EVM) in the overall management of projects

The use of timelines captures just the temporal component of managing projects. Expenses, as well as profits, are also important factors in project management and operational project performance. EVM is a way of assessing the relative effectiveness of a project at a specific instant in time. Based on the kind of project, the strategies can be implemented to projects that focus on either income production as well as reduced costs. The following highlights the importance of EVPM:

a) A project schedule that specifies the tasks that must be completed.

b) A cost-benefit analysis of every program's output. In the context of a revenue-generating project, this is referred to as the program's planned worth. When a project probably costs, this is referred to as the budgeted expense of the work schedule for the task.

c) Earned values, as well as the budgeted expense of work conducted, are predefined income as well as pricing standards (also known as measures) used to evaluate the completion of the task.

d) Valuations can be dependent on either a worth metric (income as well as profitability) or an expense measurement, the term used in the components is broad. Several additional elements are included in EVM implementations for big as well as complicated projects, including signals or predictions of expense effectiveness that is over as well as under cost, including timeline performance that is behind as well as ahead of time.

Compare to the use of baseline and current schedules only

A project may be completed ahead of time however at an unacceptably significant expense. With the EVM, one can keep records of the project. One may compare their real progress to the standard of where one's project ought to be. This will assist in making judgments depending on the present status.

It works in combination with critical route scheduling managing. Lacking EVM, initiatives may appear to be considerably over as well as underestimated. Thus, obtain a genuine contrast of how the budget, as well as timeline success, is dependent on objectively assessing technical achievement. The actual activity begins after the project is in progress. Real progress will deviate from the initial, as well as baseline, projected progression. Technology can save many baseline programs, allowing developers to compare monthly samples.

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