Project Manager case manual Study Series [12] -- use Earned Value Analysis to Control Projects

1. Application of difference analysis or Earned Value Analysis in project control

Difference: any deviation from the plan.

The difference analysis allows the project manager to identify the "troubles" of the project and take corrective actions.

The project manager needs to control four areas of the project: performance objectives, cost objectives, time objectives, and scope objectives.

Design and programming work should usually be divided into multiple small work units, with each unit working cycle ranging from 1 ~ Three weeks, with milestones measuring the completion of the work unit.

Common Methods for progress monitoring

When you monitor the project progress, you will usually ask three questions:

1. What is the actual progress of the project?
2. What are the causes of deviations?
3. What should we do for the above deviations?

You can have the following three answers to the above 3rd questions:

1. Ignore deviations
2. Take corrective actions to bring the project back to the target plan.
3. Modify the scheduler.

Bcws: refers to the budgeted cost of the work planned to be completed within a given period of time, or the estimated effort level within a given period of time.

Bcwp: it refers to the budgeted cost of completing the work within a given time. Bcwp, also known as earned value, is used to measure how much work is done.

The time cost of completing a job (acwp): the actual cost of completing a job within a given time.

Cost Difference: BCWP-ACWP

Progress difference: BCWP-BCWS