Earned value

Earned value is a key project quality management tool when used effectively. Earned value measures whether the work performed on a project has been performed consistently with customer requirements as well as product specifications. Effective use of earned value for quality purposes requires that the project manager explicitly define earned value and percent complete reporting in terms of customer or user acceptance. In other words, when a task manager reports that a task is 50 percent complete, that must mean the work completed meets the quality specifications set out for the product or service as well as satisfy the customer. That inherent definition of earned value, backed up by a corporate culture that places primary priority on quality, then becomes the insurance policy against a high cost of quality.

Earned value is both a front-end function and a monitoring function. Earned value is scheduled into the front-end definition phase by describing key milestones in the project schedule where earned value assessment can be made. The scheduling process then accounts for these scheduled milestones in the baseline schedule.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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