Project Management : A Powerful Tool For Software Projects

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lab 04 Md Atiqur Rahman Earned Value Project Management A Powerful Tool for Software Projects Earned value is a tool that helps project manager to assess the amount of budget to complete the project. It helps to identify the final required fund to get the project done. It allows to measure and finalized the budget that will take place while project will be running from 1% to 100% lifecycle. It can provide signals and warnings to project manager. If these early warning signals convey unacceptable readings to the project manager, steps can be immediately taken to avoid the undesired results. US Government has established this earned value techniques many years ago. Formalized version began in 1967 when the Department of Defense (DoD)…show more content…
Most important, the industrial engineers defined a cost variance as the differ- ence between the actual costs spent and the earned standards in the factory. This definition of a cost variance is perhaps the litmus test to determine whether one uses the earned-value concept. Then in 1962-1965 they established PERT/cost. The Program Evaluation and Review Technique (PERT) was introduced by the U.S. Navy in 1957 to support the development of its Polaris missile pro- gram. PERT attempted to simulate the necessary work to develop the Polaris missile by creating a logic network of dependent sequential events. The initial focus of PERT was on the management of time and on predicting the probability of program success. But before PERT was accepted by program management in industry, the U.S. Air Force came up with an extension of PERT by adding resource estimates to the logic networks. PERT/Cost was thus born in 1962, and the initial PERT was thereaf- ter known as PERT/Time. For various reasons, the DoD gave up on the PERT/Cost technique in the mid-1960s but correctly held on to the earned-value concept. After that C/SCSC 1967 to 1996s started the issuance of the C/SCSC by the DoD, the concept’s application has been limited only to contracts in which the government has retained the risks of cost growth, i.e., on cost- or incentive-type contracts and subcontracts. Perhaps the most significant aspect of C/SCSC employment has been the body of scientific knowledge

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