In week six, I can say this course delved into the core of
project management and cost control. Throughout the progression of week six, I
was able to identify and know how to use the different project metrics. In
addition, the attached links in this week taught me how to analyze the project
budget and expenses according to the estimated timeline.
Starting with the earned schedule, after six weeks of
studying and making researches, I can identify it in few words. Earned schedule
is number of months completed plus earned value for the month minus previous
month planned value further divided by planned value of present month minus
previous month’s planned value.
Springing into the earned value, I realized that the earned
value is a project management technique for estimating how a project is doing
in terms of its budget and schedule. The purpose of earned value is to obtain
an estimate for the resources that will have been used at completion “The basic
premise of EVM is that the value of a piece of work is equal to the amount of
funds budgeted to complete it” (Portny, 2013, p.344). The objective of this module
is to introduce you to the Metrics and Performance Measurement tools used,
along with Forecasting, in Earned Value Management.
Week six’s assigned
videos illustrate using project metrics in cost control process, where there
are three basic and primary elements of the Earned Value Management (EVM);
Planned Value, Actual Cost, and Earned Value. It’s basic concept work around
the project from initial to execution including data analysis techniques and
The intent behind the EVM’s elements is to measure the earned
value and emphasize the project’s performance that’s why it calls as
a valuable management tool. It helps to improve the standard comparison of
budget (planned value) versus actual cost which lacks an adequate indicator of
progress. While earned value is a value that assigns to work which accomplish
during a particular time period. All the EVM’s measurement can be measure
through units as; hours or dollars for the particular project or work.
Simply, cost control is an important process of managing and
reducing the business expenses through three stages: before, during and after
the event “All of the budgets on any project should be logged for successful
baseline control” (EVMS Education Center, 2012, para.10).
After the event, the project metrics can be utilized to
compare the performance of the actual cost/time with the expected and reduce
the difference between the expected and actual.
In general, this course was beneficial on the personal or the
professional level. These concepts and theories were useful in teaching me how
to plan for my daily activates and this is how I’m planning for my wedding now,
as well as I can reflect this knowledge on my job.
conclusion, I learned that in order to measure the project’s performance with
the EVM, the following formulas almost give you the nutshell: