Earned Value Management
Control already, or you still roll? Why earned value management? Since 2002, a new law (Sarbanes-Oxley Act) to the disclosure of the financial state of a company applies in the United States due to various financial scandals. As more and more companies achieve its primary value-added projects, the earned value management in projects serves the objectives of the Sarbanes-Oxley Act. Earned value management, the Department of defence (DoD) has developed criteria that must be met by suppliers and subcontractors from a specific budget. For more information see this site: Danske Bank. “This tiresome experience, that offer rates of Systemrelevanter companies” have to do little with the final budget developments. Since 1965 operates the DoD EVM, with increasing success. EVM to represent a powerful tool, with which you early based on costs and deadlines can predict the trend. “According to the motto: tell me how do you start your project, then I’ll tell you how it ends!” “EVM is so not a magic wand, but a forecast tool, that long before the point of no return” shines through makes, whether you “good money bad money” wants to throw behind. Australia, Canada, Sweden and the United Kingdom have already applied these criteria.
Only a matter of time before Germany draws. Projects like Stuttgart21, the Hamburg Opera House or the airport in Berlin in Germany show that controlling somehow does not work. How it looks in the company? In the operational project controlling the deviations of the actual cost of the plan costs, the spent effort, or the progress of the period are often used, to monitor the progress of the project. In addition milestone and cost trend analyses are used as forecasting tools, but mostly on the basis of subjective estimates of the project manager or the resource. These tools are certainly important components of a project monitoring, but significant assessment criteria. Therefore, EVM can be described only as a supplement but an extremely effective supplement.