ENGG2111 Lecture Notes - Lecture 4: System Monitor, Team Effectiveness, Shared Belief
2 Sep 2018
School
Department
Course
Professor
Document Summary
Comparing budget and actual costs of a project may not be always clear. Earned value analysis helps project managers to measure project progress and cost performance. Used to find variances between work performed vs planned, budget costs vs expenditures, and provides quantitative data for project decision making for cost and schedule management. Earned value concepts were developed by the us gover(cid:374)(cid:373)e(cid:374)t"s depart(cid:373)e(cid:374)t of defence to track its programmes during the 1960s (nasa, 1997). It is used in the private sector by companies in a variety of industries, consulting firms and educational establishments. Earned value is the budget cost of the activities that have been performed in a project at a certain date. The schedule variance is the difference between the earned value and the budget costs of work planned. The cost variance is the difference between the earned value and the actual costs at a certain date. Three dimensions need to be calculated in earned value analysis:
