Assured value analysis

earned value extended

To thrive in today’s ultra-competitive global marketplace, an increasing number of companies are expanding their core operations to include project management practice. After these organizations successfully mature their project practice, many adopt earned value management (EVM) to measure project performance in relation to the amount of work planned against the amount of work performed. But when these organizations rely only on EVM concepts to measure performance, they can fail to accurately gauge actual performance. This paper describes an extension of EVM called assured value analysis (AVA), a process that uses two new measures that can improve EVM calculations. This paper also demonstrates how organizations can use AVA to obtain both performance measurements that reflect actual performance and cost measures that improve cost estimating. It reviews the existing relevant literature on EVM, identifying the concept’s contemporary definition and discussing its use in numerous industries. It also explores metho
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