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An Earned value analysis helps us in quantifying the gains and losses of the company. It helps to balance out the gains and losses. It helps in finding a way out to maximize the gains and minimize the losses. It is an effective tool to control the various dynamics such as the physical performance and the cost performance of the company. It ensures a maintained progress of cost management that are related to scope and requirement and quality risks. A detailed planning is needed in the cost management in construction projects. But it is quite ambiguous to determine the actual costs because the actual costs is not equal with the work performed and it is not equal with the work scheduled. The importance of Earned Value Analysis is described in Earned Value Analysis Homework Help.Clients looking for various notes regarding Earned Value Analysis can refer Earned Value Analysis Homework Help.
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Various Foundational concepts of Earned Value Analysis
The various foundational concepts of Earned Value Analysis are explained in Earned Value Analysis Homework Help as follows
1. Planned Value: – This is related to knowing about the progress of the project at a specific point of time and by this we can estimate the cost of the project. There is a cost and schedule baseline that is related to the physical work scheduled and the amount of cost allotted to perform the project. The following points given in Earned Value Analysis Homework Help describe regarding the foundational concepts involved in Earned Value Analysis.
2. Actual Costs: – It refers to the amount of expenditure that is carried out in the project. This is also known as actual expenditure of the project. This figure notifies us the amount of costs that we have spent and that can be used to assess the expenditure with the planned value. This figure can be related to both cumulative and current costs. Cumulative AC is the cost of expenditure that has been performed till date whereas current AC is the cost of expenditure for a set of activities within a stipulated period.
3. Earned Value: – To showcase the result and all the accomplished activities, the earned value must be brought to figures and the estimations in the project. We use earned value whenever we quantify all the work that is done and what would be its worth. So basically earned value tells us whether the project is successful or not. Earned value also has cumulative AC and current AC.
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