Question

Why is “Earned Value Management” more appropriate to use with projects than for other investments?

Answer 1

“Earned Value Management” is more appropriate to use with projects than for other investments due to below reasons:

1. Earned value management can be defined as a technique which is used to help project managers to predict performance, cost etc on a project.

2. It helps in comparing what are the road map and the actual performance.

3. It actually focuses on three important data which are the initial budget, the actual value of finish product and the earned value after completion of the project.

4. It is very clear from the above points that this method is developed to help large projects without getting into failures like going over budget, under delivering etc.

5. While it has so much benefits for a project manager, it has only one benefit investors which is they getting the information on which project is worth investing in. Hence “Earned Value Management” is most appropriate to use with projects than for investment.