Earned value management is basically a process of figuring out difference between estimated costs measured to be used in project and more cost which is used in project. Template in excel is a table and chart in graphical form to show the variance between budget and actual work progress and cost incurred.
It is a process which provided overview of project whether it’s going as budgeted including cost as well as work progress that this amount of work should be done till this time and the amount of work actually done till that time as well as cost expense as budgeted and actual cost incurred.
Objective of Earned Value Management Template
- The basic objective is to outline problems occurring during project to make changes in to complete project on time.
- To make corrective measures in working procedure to avoid a situation of project become out of control.
- Different type of procedures is available to identify different problems.
- Same parameter can be used to measure cost effectiveness as well as machine hours or labor time.
Advantages of EVM
- It reduces the risk of project failure in severe cases.
- Earned value management software saves time therefore project can be completed due date and avoid deadline to be reached.
- This ultimately results in maximize profit earning opportunity for company as well as to gain good fame which will be helpful in future.
- Certain amount of raw material and labor hours as well as machine hours is required for a specific project.
- It identifies limiting factors which can later cause temporary or permanent pause to project cycle.
- It increases communication process between managers and stakeholders so that they can also have an idea about project stage.
- In case of any major change needed it can be done on time to complete project tasks as budgeted.
- Tracking the profit ratio earning from project can be made.
- To evaluate and monitor performance is easy.
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The cost budgeted to complete a project is basically planned value. It also includes time measurement budgeted for particular tasks or project completion.
Actual cost incurred
It is the showing of actual amount of money which is incurred in project cycle for completion of specific goals or final objective.
It is the actual budgeted cost for project showing value earned from a project.
It is also known as cost variance. It shows the person whether he was according to the budget or has incurred expenses more than the expenses as well as the cost difference.
Variance Analysis EVM:
Earned value management template 1: Link
Direct Download: Link
Microsoft Excel Template for EVM
It is preferred choice of small and large businesses as it is efficient to show the information and to make the calculations. A graph can be used to show different terms like planned value etc on graph with different colors to show all types of variance individually and their point of intersection. This chart can be used by project managers as well as stakeholders as per requirement.