What is the Eeaned Value Management?
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.
Which are the three key factors for Eeaned Value Management?
Earned value management (EVM) considers three key factors:
- Planned value (PV): The amount of work that was planned to be done at a given point in time, as measured by the project schedule and budget.
- Actual cost (AC): The amount of money that has been spent to date to perform the work that has been completed.
- Earned value (EV): The estimated value of the work that has been completed at a given point in time, as measured by the project schedule and budget.
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.
Earned Value Management with Rabio
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.
Keep track of your Earned Value with Rabio
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.
Rabio is open-source
You can download Rabio open-source version here