Question

How does project budget, scope and earned value manafment compare and contrast in nature?

Answer 1

Q1.

ANS: Project Budget: is a tool used by the project to estimate the cost of the project. The basic objective of Project budgeting is to estimate and control cost within the prescribed budget limit. The budget is allocated for each phase of the project.

Project scope: it can be defined as a detailed and comprehensive study of project deliverables. These deliverables vary according to the requirement of the project. The project scope includes Planning, controlling and implementation of the project deliverables.

Earned Value Management(EVM): it is a systematic process to assess project performance. It is used to find variances in the project, based on the comparison between Actual work with the standard work. It is usually used in cost and schedule control.

Comparing Project budget, scope and Earned value management

Project Budget	Project scope	EVM
The basic purpose of the project scope is to control cost.	The basic purpose of the Project scope is to derive project requirement.	The basic purpose of EVM is to measure project performance.
It helps in estimating the budget.	It helps in delivering goods and services.	It helps in reducing risk.
It is commonly used in all the major project.	It is widely used in almost all the project.	EVM is used mostly in Risky project.
It has limited scope.	It has a wider scope.	It has limited scope.
Historical data is used to estimate the project budget.	It studies the boundary limit within which the project is to be planned and controlled.	This study is done based on Planned value and Earned value.