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What are the advantages of using earned value management?

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I know that EVM is good for assessing the current project situation (how close are we to the budget, etc...), but are there any other advantages?

Can someone list all the advantages of using the EVM technique?
asked 8 years ago by anonymous

2 Answers

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The answer which few people even realize is how EVM, applied correctly and appropriately, enhances a contractors cash flows.

The whole concept of prompt payment for work done right the first time, is a major incentive for contractors, as they live or die by their cash flows and anything that can help enhance or expedite those cash flows is in their best interests.   

And this produces a win for the owners as well, as the contractor is trying to get in, do his/her work then get out as quickly as possible.

BR,
Dr. Paul D. Giammalvo, Jakarta, Indonesia
http://www.build-project-management-competency.com
answered 7 years ago by anonymous
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There are several advantages to using EVM.  Of course, you must keep it scalable.  Government agencies working on billion dollar multi-year projects hopefully have a full EVM implementation.  I've used it on projects as small as $50K because it becomes a very easy way to explain to clients how the project is going and their money is being spent.  I didn't have anything more than a spreadsheet and a once every week or two trip to the finance department (other side of the building) to manage with EVM.

The key advantages are:

- Able to combine cost and time into a single view.  It should be difficult to run out of budget, but have more than 50% of the schedule left without knowing it.

- Able to deal with uneven rates of expenditures.

- Provides an early warning when corrective action is required.

- Provides accurate and trusted data (EVM makes project finances and schedule very transparent).
answered 7 years ago by sdcapmp (45,840 points)

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