What is the importance Value of Work Done (VOWD) and How do you calculate the value of work done?

The value of work done (VOWD) is a project management technique for measuring and estimating the project cost at a point in time. It is mainly used in project environments of the Petroleum industry and is defined as the value of goods and services progressed, regardless of whether or not they have been paid for or received. The primary purpose of determining VOWD is to get an accurate and comprehensive as possible estimate of cost for a project at a point in time. This is used in overall project management including reporting and cost control.

Unlike the earned value, which measures the value of goods and services received as a percentage of the planned value, the VOWD is not measured against the plan, but against the committed cost. Committed costs can be derived from purchase orders, contracts, approved changes, change orders and other forms of commitments. From an earned value management point of view, the VOWD is comparable to the actual cost achieved rather than the earned value. VOWD represents the full value of the work that has been achieved, at a point in time, against the commercial criteria of the commitments for that work, regardless of payment or receipt.

The main methods of calculating VOWD are as follows:

VOWD for engineering, procurement and construction (EPC) services

VOWD for tagged equipment

VOWD for procured regular bulk materials

VOWD for procured non regular bulk materials

VOWD for procured major equipment

VOWD for construction

VOWD is not solely based on goods and services receipts. VOWD is not solely based on cash and or invoice payments. VOWD is not simply a milestone based costing valuation. These components are referenced in determining VOWD, however VOWD is a more fulsome valuation determination of the full value of goods and services committed to and obligated to, at a point in time. Regardless of whether they have been paid for or have been completely received.

To calculate value of work done, the project manager needs to know the hourly rate of labor (Rate) and the amount of hours worked (WH). The basic formula for value of work done is the amount of work multiplied by labor rate, or VOWD = rate * WH.

The Value-of-Work-Done is a great way to look at the financial productivity of your team.  It is a simple calculation of time-worked multiplied by rate-per-hour that can be billed, but it is a very important in time based billing businesses.

Value-of-Work-Done is a measure of productivity in financial terms.

Because all business bill differently for different work, with some billing up front, others billing on completion and some in between, knowing the Value-of-Work-Done daily, weekly, fortnightly by your team is a valuable key performance indicator and management tool.

Calculating the value of work done where every hour worked directly relates to an hourly rate is simple with a (time X rate) calculation.

Value of work done (VOWD) is a technique mostly used in project management for the objective of ascertaining, measuring and estimating as well as evaluating the cost of the project at any particular point in time. One of the ways of calculating the value of work done automatically is having network activities and use POC's/Progress analysis to arrive at value of work done but this cannot be used outside networks prrojects .

The value of work done (VOWD) technique is a method for measuring and estimating the cost of the project at a specific point in time. This can either be a given point of time, like the actual end of the project, or a forecasted point in time, like the projected end of the project. The main purpose of the value of work done technique is to determine an accurate and comprehensive estimate of the cost of the project at a specific time. Simply put, value of work done provides a financial measure of productivity.

 

Calculating value of work done is fairly straightforward in most situations, but can require some complex thinking for others.

To calculate value of work done, the project manager needs to know the hourly rate of labor (Rate) and the amount of hours worked (WH). The basic formula for value of work done is the amount of work multiplied by labor rate, or VOWD = rate * WH.

 

The value of work done (VOWD) is a project management technique for measuring and estimating the project cost at a point in time.

The most important thing about VOWD is to get an accurate and comprehensive as possible estimate of cost for a project at a point in time.

To calculate value of work done, the project manager needs to know the hourly rate of labor (Rate) and the amount of hours worked (WH). The basic formula for value of work done is the amount of work multiplied by labor rate, or VOWD = rate * WH.

It's depends on the hour rate and the time spent basis

The value of work done is a process to calculate and estimate the value of project cost.

To calculate the value of work done, the project manager needs to know the hourly rate of labor (Rate) and a number of hours worked (WH). The basic formula for the value of work done is the amount of work multiplied by labor rate, or VOWD = rate * WH.

The value of work done (VOWD) is a project management technique for measuring and estimating the project cost at a point in time. It is mainly used in project environments of the Petroleum industry and is defined as the value of goods and services progressed, regardless of whether or not they have been paid for or received. The primary purpose of determining VOWD is to get an accurate and comprehensive as possible estimate of cost for a project at a point in time. This is used in overall project management including reporting and cost control.

Value of Work Done can be Calculated by Multiplying "Working Hours with Rate of Work per Hour"

In fact vowd is actual cost or actual expenditure and usually it has been shown on cost baseline as well as it is an element of financial performance of project:

Project Financial Progress = vowd/planed cost at that time.

It is because of its constructive role in improving the quality and quantity of results and output of human resources in the organization. The performance evaluation of an employee is defined based on his job responsibilities. The output of the performance evaluation system is important for measuring the added value of human resources in terms of increasing business income. Examining the indicators of this system is used to compare with industry standards and measure the overall return on investment (ROI) of employees.