More than two-thirds of engineering consultancies experience negative project revenue variances, according to a recent EFCG CEO survey. Is your firm one of them?
Complete project visibility is critical to assessing performance and keeping projects on track. But all too often, disconnected and overly subjective processes can cloud a Project Manager’s ability to clearly view the status of a project.
By introducing Earned Value Management (EVM) into your organization, you can help ensure that projects are completed on time, within budget, and according to specifications.
EVM is a technique for objectively measuring project performance from both financial and scheduling perspectives. The technique is built on three metrics: Planned Value, Earned Value, and Actual Cost.
Planned Value represents the value a project is expected to deliver over its duration. Earned Value represents the revenue a project earns as work is performed and milestones are achieved. Actual Cost is the market (or retail) value of the cost a project incurs as work is performed.
A number of design consultancies have already begun incorporating EVM into their project management methodology to get clearer, timelier insights into project status. However, the technique still represents unexplored territory for many engineering firms.
To help firms better understand how to successfully implement EVM into their organisation, BST Global hosted an educational webinar in 2015 entitled, Reducing Project Variances: A Guide to Earned Value Management.