IMPORTANCE OF EARNED VALUE METHOD (EVA) IN THE PERFORMANCE ANALYSIS OF PROJECTS

Abstract

The economics of the projects is an important process in the project management. Effective control of projects is based on appropriate methods for monitoring, and the entire project, the timetable, cost, quality and risk. Unlike accounting aspects in project management are looking for information that allow insight into the status and trends of financial progress of the project. Such information provide a method of earned value. It is a key component for assessing the actual performance of the project. The method of earned value is a better indicator of the progress of the project in comparison to the classical method of comparing planned and actual costs. This method shows the profit in relation to actual costs at a specific time point. This method is the basis for calculating the index of the project performance. In this sense, MS Project provides many opportunities for quality control and monitoring of the realization of the projects. In this study will be described the architecture of this method, outlined the benefits of the application of this method, and the basic criteria that should satisfy project management to be able to apply it.

Keywords

• the value analysis
• project management
• performance indicators
• earned value.