Earned value is a project management technique that helps measure project performance by comparing actual progress against planned progress. It provides a quantitative assessment of how much work has been completed on a project and how much it should have cost at a particular point in time.
Therefore, EV serves as a valuable Key Performance Indicator (KPI) in construction projects by offering a quantitative assessment of project performance based on the accomplished work compared to the planned budget and schedule.
Earned value management (EVM) considers three key factors:
By comparing these three factors, project managers can calculate the project's schedule and cost variances, which provide insight into whether the project is ahead or behind schedule and whether it is over or under budget. These metrics can help managers identify potential issues and take corrective action before they become major problems.
For sure earned value calculations can help project management on a project to identify problems early and be proactive and reactive. EV metrics have to be defined in a standard manner, and the data must be available for reporting across the project portfolio.
If you’ve never calculated earned value on your project or if it’s been a while, try it out. You might be surprised by what you find. Rabio will help you to keep track of Budget, Actual Costs and Earned Value.
Rabio is open-source software that was designed to manage and control budgets, their costs, and produce reports based on a flexible cost breakdown structure. It is budgeting software that can keep track of Earned Value and it is distributed for free.
You can easily use it for your personal needs or your business. Using Rabio ‘s managers system you can design and control your budget and compare it with costs and earned value at any time using the easy reporting internal system.
You can download Rabio open-source version here