Metrics for Interpretation of Earned Value Data

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Metrics

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Table of Contents
Interpretation of earned value data..................................................................................................3
Metrics.............................................................................................................................................3
Additional Metrics...........................................................................................................................6
Reference list...................................................................................................................................8
Appendix..........................................................................................................................................9

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Interpretation of earned value data
The Earned Value Management (EVM) is a method of accurately and precisely dealing with
estimation and joining of specialized achievements, calendar and cost on an errand or an
undertaking. EVM provides workers and managers with the capacity of measuring basic system,
cost information, turning points and information related to projects (Kerzner, 2013). However on
the contrary, earned value helps in the incorporation of cost estimation, risk management
timetable and project scope. Project performance evaluation and target appraisal are permitted by
earned value management. According to De Marco and Narbaev (2013), earned value
management helps in the prediction of execution, defects as well as project timeline
restructuring. An estimation standard which helps in surveying the items, effectiveness,
execution, progress, undertaking, procedure, profitability or nature of a deliverable, is
characterized as a metric. Iacovou, Thompson and Smith (2009) have opined in their work that
measurements help in the layout of patterns, enhancement of basic capacities of leadership and
for building consistency. Hence, it can be said that a roadmap is created by project measurement
for the evaluation and completion of tasks. However, the significant tools of measurement help
in enhancing and improving the analysis of reliability and quality. Therefore, the procedure of
establishment of significant metrics helps in the facilitation of completion of tasks.
Flyvbjerg (2013) suggests that the directors are empowered for evaluation of progressing venture
status by project measurements on the basis of expense, benefit, and task defect and work
schedules. As a result, the measurements of project administration help in the empowerment of
project directors towards the anticipation of the potential dangers and risks (Pavlak, 2004).
Metrics
A research and development company is presented in the case study that has been shared by
Kerzner (2013). The organization has recently gone through huge financial losses because of
failed projects. The main fact of concern is that negative project trends were not reported. As a
consequence of such non-reporting of trends, the budgeted amount for projects was almost spent
by the company without any affirmative result or outcome. In terms of finance, approximately
US $24 million were lost by the company. Such a loss could have been decreased the tracking
and reporting system had been effective and accurate. After observation, it came into notice that