![]() To learn more about EVM, check out this guide: Earned value analysis is an analysis method we can use to evaluate a project’s performance and progress.Įarned value analysis and its key dimensions are a part of earned value management (EVM), a performance management methodology. Thus, it tells us if our project is over or under budget.Ĭost variance is one of the key dimensions of earned value analysis (EVA). In simpler terms, cost variance is the difference between the allocated budget for work performed and the actual cost it incurred. Conclusion: Keep tabs on cost variance to ensure project successĪccording to the PMBOK® Guide (7th edition), cost variance is “the amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.”.Tip #5: Continue to forecast throughout the project’s lifecycle.Tip #4: Investigate cost variances regularly.Tip #3: Keep track of the project’s KPIs.Tip #1: Set realistic and accurate goals and estimates.5 Tips to keep your project’s financial performance in check. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |