How are we doing? Quick earned value ratios to check your project’s health

Project Managers use the Earned Value Management technique to zero in on their project’s health.   It’s a tool that helps the project manager to objectively answer, how are we doing?   The technique can provide an  early barometer of impending trouble.   In the heat of project execution, how many times have you asked yourself, is my project on track?  Are we where we should be?  If we keep moving at this rate, is it likely that we will we finish on time on budget?  

You can use the Schedule Peformance Index (SPI) and the Cost Performance Index (CPI) ratios to determine your project’s performance relative to the planned schedule and budget.  They can be powerful indicators to keep you and your project stakeholders informed.  NASA provides a wealth of detail about earned value management at  evm.nasa.gov/tutoriala.html.  You can also visit the The Project Management Institute’s College of Performance Management to learn more.

-Project Walker

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