Leverage earned value management (EVM) methods to improve project control & performance

Discover how implementing this method can optimise project progression and outcome.

Why is EVM important to ensure project progression and success?

In the fast-paced business environment of the construction industry, even meticulously planned projects can encounter unforeseen challenges. This leads to construction project delays, budget overruns, and missed deadlines. Industry reports indicate a concerning statistic: a staggering 70% of construction projects fail to meet their original goals.

However, there is a powerful tool at your disposal to significantly improve project outcomes: earned value management (EVM). This project management technique goes beyond basic task tracking. It leverages real-time data to provide a comprehensive picture of a project’s health, allowing project teams to proactively identify potential issues, make informed decisions, and course-correct before problems escalate.

Let’s explore how implementing EVM measures can improve project control and performance, ultimately leading to better construction project outcomes.

How can EVM improve project control and performance?

Enhanced visibility and early warning

Enhanced visibility and early warning

EVM tracks project progress against budget and schedule baselines. Deviations from the baseline become readily apparent, allowing teams to identify potential risks and cost overruns early on. This foresight enables proactive intervention to minimise negative impacts, which includes adjusting work schedules, optimising resource allocation, or initiating negotiations with vendors.

Objective performance measurement

EVM utilises key metrics like earned value (EV), schedule performance index (SPI), and cost performance index (CPI) to provide an objective assessment of project health. EVM allows for performance comparisons against historical data or industry benchmarks. These metrics go beyond subjective gut feelings, offering clear and quantifiable data for informed decision-making.

Objective performance measurement
Streamlined communication and collaboration

Streamlined communication and collaboration

EVM fosters improved communication and collaboration between project stakeholders. EVM data can be effectively communicated through reports and visualisations, facilitating better communication across different project teams. This ensures everyone is kept informed about the project's progress and potential roadblocks, enabling timely collaboration and decision-making.

Improved resource allocation

By understanding project progress through EVM, teams can move beyond guesswork when allocating resources. EVM data highlights if a project is falling behind schedule or exceeding budget allocations. Real-time data reveals activities needing extra support or underutilised resources. Project teams can strategically reassign personnel and equipment, thus maximising project efficiency.

Improved resource allocation

Leverage EVM with Compass Consult

Project teams often aim to deliver optimised project outcomes, meet set deadlines, and stay within budget. However, they often fall short of these expectations.

Compass Consult is here to help you navigate these hurdles. Our team of experienced professionals specialises in teaching project teams how to leverage EVM. We also offer comprehensive support for the implementation of Primavera P6 project management software, provide expert consultations, and conduct training sessions.

Contact Compass Consult today to leverage our expertise in Earned Value Management systems and enhance your project management capabilities.

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FAQs

How does EVM improve visibility into project progress?

EVM goes beyond basic task tracking. It uses real-time data to track completed work, actual costs incurred, and schedule progress against the planned baseline. Deviations from this baseline become readily apparent, allowing teams to identify potential issues early on.

How does EVM assist in controlling project costs in construction projects?

EVM provides a structured framework for monitoring and controlling project costs throughout the project lifecycle. By comparing earned value to actual costs incurred, EVM identifies cost variances and deviations from the budget baseline.

How can EVM be used to improve performance in future construction projects?

EVM data from completed projects serves as a valuable resource for future endeavours. By analysing past performance trends and lessons learned, project managers can refine project plans, resource allocation, and risk management strategies for upcoming projects, leading to improved overall performance.

Contact Compass Consult today to incorporate EVM into your project management process.

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