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Chapter 10. Forecasting Final Cost and Schedule Results

Chapter 10. Forecasting Final Cost and Schedule Results

There are numerous reasons why more and more companies are beginning to employ a simple form of earned value to help manage their projects. Earned value requires that projects work to an “integrated” baseline plan, meaning that the defined scope of work must relate to the authorized resources, which are then set into a time frame for performance. We know of no other technique that fully integrates the project’s scope, costs, and schedules.

But perhaps the single most compelling reason to employ earned value is that it enables the project manager to be able to “statistically” forecast the (probable) final cost, and schedule results on the project ... from as early as the 15 percent completion point. With earned value, the project does not have to wait until it is 90 percent spent to know that it has a problem. The 90 percent point is too late to alter the project’s final course. Earned value provides an “early warning” message to management in time to take corrective action, in time to influence the final results with aggressive action.


  

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