Forecasting the final cost and schedule results
Because owners always want to know--before inception and throughout implementation--how much a project will cost and when the team will finish, project managers have long practiced the art and science of project forecasting. Unfortunately, the methods commonly used have often prevented project managers from producing accurate results. This article examines an earned value (EV) approach to forecasting project outcomes. In doing so, it discusses the challenges involved in developing forecasts and the indices used in EV forecasting; it defines three factors that can significantly influence a project's budget and schedule. It then outlines the formula and the process for forecasting--via the EV method--a project's final cost and schedule outcomes.