Earned value structure is one of the most relied and commonly used management device used by organizations. This is due to the advantages organizations get from implementing the EVMS in their operations. However, some of the organizations do not value ideas. For those companies which do not have an idea of what EVMS is, here are the benefits they will get from implementing Earned value management System in their operations.
The EVMs can be used to predict the project success prior to its commencement. This is due to the principles the model uses which have shown a positive correlation when it comes to project success. This helps management to predict with certainty the success of their projects thus allowing them to invest on projects which are successful.
When a project shows variances, it is a bad indication of project failure. With the earned value scheme or structure the program may hide the cost or schedule variances thus posing some risks during the project life-cycle. However, the system can easily identify this problems and organizations can correct them early enough to avoid slowing down the project activities.
Organizations which use these systems help them reduce the work load since they assist them to handle only the critical issues. This ensures that the management only tackles the most crucial matters thus giving them time to focus on other activities.
The cost of purchasing the scheme is quite expensive that is why small organizations do not prefer using the scheme. Also the facts that the scheme works well for organizations with functional entities which work together limit some companies from using the model. Also implementation of the scheme requires a long term approach while some of the organizations require short term approach. This limits them from using the structure no matter the system being a good predictor for projects.
The metrics of the earned value structure of administration are very reliable when it comes to project performance prediction. The system achieves this by combining the project scope, schedule and cost as a three metric dimensions that collectively can be used to predict and measure the performance. These three metrics have proven to be accurate and realistic thus making the model be relied by practitioners.
As much as the use of the EVMS is highly recommended and help organization to predict the success of their projects, applying the system on a project that is in progress can have detrimental effects to the whole project. This can affect the organization, schedule, budget and the performance of the whole project.
Stakeholders are also alerted on any problem that may affect the venture early enough for them to take the necessary measures to avoid any risks. This helps them do the right adjustments throughout the implementation and development stages thus getting such a project back to its track. Also these problems are prevented from occurring during project execution process by laying down strategies on how to overcome them thus reducing any chances of the project failing.
The EVMs can be used to predict the project success prior to its commencement. This is due to the principles the model uses which have shown a positive correlation when it comes to project success. This helps management to predict with certainty the success of their projects thus allowing them to invest on projects which are successful.
When a project shows variances, it is a bad indication of project failure. With the earned value scheme or structure the program may hide the cost or schedule variances thus posing some risks during the project life-cycle. However, the system can easily identify this problems and organizations can correct them early enough to avoid slowing down the project activities.
Organizations which use these systems help them reduce the work load since they assist them to handle only the critical issues. This ensures that the management only tackles the most crucial matters thus giving them time to focus on other activities.
The cost of purchasing the scheme is quite expensive that is why small organizations do not prefer using the scheme. Also the facts that the scheme works well for organizations with functional entities which work together limit some companies from using the model. Also implementation of the scheme requires a long term approach while some of the organizations require short term approach. This limits them from using the structure no matter the system being a good predictor for projects.
The metrics of the earned value structure of administration are very reliable when it comes to project performance prediction. The system achieves this by combining the project scope, schedule and cost as a three metric dimensions that collectively can be used to predict and measure the performance. These three metrics have proven to be accurate and realistic thus making the model be relied by practitioners.
As much as the use of the EVMS is highly recommended and help organization to predict the success of their projects, applying the system on a project that is in progress can have detrimental effects to the whole project. This can affect the organization, schedule, budget and the performance of the whole project.
Stakeholders are also alerted on any problem that may affect the venture early enough for them to take the necessary measures to avoid any risks. This helps them do the right adjustments throughout the implementation and development stages thus getting such a project back to its track. Also these problems are prevented from occurring during project execution process by laying down strategies on how to overcome them thus reducing any chances of the project failing.
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