With the demise of Carillion, Government departments’ scrutiny over the progress of their major projects is increasing.
One method being used to manage infrastructure projects is Earned Value Management. As well as being able to monitor costs and schedules, it also has a value add element that allows organisations to track and measure the progress more effectively.
Earned Value is not a new idea, it has been in use since the industrial revolution. However, it came to prominence first in the US when the government introduced earned value management as a requirement for their contracts, and has in the UK where Government Departments are keen to establish the value add of their major contracts. The concentration being applied to major suppliers in the wake of Carillion’s demise, means that effective tracking of progress throughout the project is increasing in importance.
Earned value management offers opportunities beyond the simple adherence to contract requirements. It allows an organisation to have transparency around projects, programmes and portfolios of stand-alone and integrated works, and provides a clearer indication of progress on large-scale projects than other traditional monitoring techniques. In essence it allows organisations to keep projects on schedule and within budget.
However it is far more than simply applying the three set formula of schedules, costs and completion to a project. There are often different variables to be considered with each project, as well as ensuring data is consistent and true.
At the forthcoming APPS18 Oracle event, Nathan Morgan from Prōject (EU) Ltd will be showcasing how both Government Departments and major suppliers can benefit from adopting Earned Value Management. The presentation is being made on Wednesday 5th December 2018 at 3.20pm in the main hall.