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Validating the Concept of Earned Value Management
It is important to note, from the onset, that most companies have in the past made extensive use of planned costs and actual costs in seeking to track project costs. In this case, if all the funds assigned to a specific project are used up, then the target is seen as having been hit. However, a cost under-run is perceived is less funds are spent than had been allocated. Similarly, we have an overrun situation whenever more is used than had been allocated. Although this approach has been used extensively in the past, it is important to note that it does not take into consideration the value of work performed – which is a critical dimension that ought not to be ignored.
The relevance of earned value management (EVM) cannot be overstated in the measurement of project progress as well as performance. EMV, in the words of Carroll (2017), “provides a way of keeping control of a project and illustrating its progress towards completion in terms of work and value (cost)” (102). In essence, it is important to note that amongst other things, EVM comes in handy in facilitating the measurement of work that has actually been undertaken in a project setting. As Flemming and Koppelman (2010) point out, EVM has gained widespread usage overtime. In general, those that embrace EVM are able to have access to timely data that enables management to not only evaluate progress, but also institute the relevant corrective measures if need be. Thanks to EVM, senior managers also have access to summary reports.
It should also be noted that one of the key components of EVM is project baseline. This is more so the case given that it is deemed to be a critical point of reference for the various activities related to EVM. The data EVM provides for project decision making purposes is largely quantitative. In basic terms, therefore, EVM systems provide answers to some basic project management questions. In relation to a specified project, the project manager does have insight on where they have been, the present status, and where they are headed.
In seeking to validate the concept of EVM, it would be prudent to highlight some of its benefits. As a matter of fact, EVM has a wide range of benefits that transcend...
Unlike is the case with traditional management, EVM has several sources of data. Via the incorporation of these data sources, EVM enables the comparison of the scheduled work’s budgeted value with not only the completed work’s actual value but also what Fleming and Koppelman (2010) refer to as “the EV of physical work completed” (74). Thus, in comparison to normal project tracking, EVM enables project managers to have access to more useful information – and as a result, they are able to determine whether or not the project is at the desired point and the timelines with regard to completion. With EVM, it is possible to not only have better control the various activities of the project, but also a more enhanced visibility of the same (Fleming and Koppelman, 2010). On this front, emerging issues can be addressed early enough so as to ensure that the project progresses without any major hiccups and is completed in good time. In instances where EVM is not utilized, it may not be possible to chart the project status in an informed and accurate manner.
EMV should, in essence, be seen as an approach towards sound project management practices. This is particularly the case given that as Garrett (2011) observes, with EVM, it is possible for the project manager to determine or assess the much that has been achieved so far in an objective and informed manner. It is also important to note that with EVM, as has been pointed out elsewhere in this text, it is possible to forecast the future with a higher degree of certainty. This is made possible via an analysis of the much that been achieved so far. Further, the information provided by EVM can be presented in an easy to grasp graphic format. This is particularly important given the need to ensure that all the stakeholders are well briefed on the various specifics and aspects of the project or undertaking. With this information, stakeholders can be able to determine whether or not the project is giving them value for money.
According to Garrett (2017), the fact that EVM effectively fulfills the role of an early problem detection system further underlines its relevance. When problems are identified early enough, it is often possible to adopt or…
References
Carroll, J. (2017). Earned Value Management in Easy Steps: Keep Tabs on the Real Status of All Projects, Including Agile Projects. New York, NY: Easy Steps
Flemming, Q.W. & Koppelman, J.M. (2010). Earned Value Project Management. Mason, OH: Project Management Institute.
Garrett, G.A. (2017). Earned Value Management: Tools, Techniques and Best Practices. New York, NY: Wolters Kluwer
Hickson, R.J. & Owen, T.L. (2015). Project Management for Mining: Handbook for Delivering Project Success. Eaglewood, Colorado: SME.
Earned Value Management This is the standard method used in the project management industry to measure the progress of a project at any given time. It also allows for forecasting of the project's completion time, its final costs and the project manager can also analyze any variances in the project's budget, and schedule as the project is ongoing. Earned value management through earned value analysis achieves these by allowing the project
The intent of the Earned Value Project Management planning session would be to concentrate on providing the stakeholders within insights into each phase of the project development and the level of earned value at any point in time. The ability to use Earned Value Project Management to define checkpoints and key insights into the financial performance of a project plan is critically important to ensure the project will succeed
Project Management and Earned Value Management Effectively managing complex projects requires an intricate balance of computational skills, prescient preparation, and a keen sense of adaptability when contingencies inevitably occur. The interplay between a project's scope, time, and cost is ever evolving, and this unpredictability presents project managers with an unending stream of data points and ratios through which success or failure can ultimately be determined. One of the most valuable concepts
Most of these limitations can be attributed to project managers that use this technique. Some of the specialists in the field consider that the success of strategies based on earned value management relies on the project managers in case. This means that companies must orient towards project managers with proper skills that can be addressed. Therefore, the recruitment and selection process is very important when developing the project team. Companies
S. Air Force. During the heyday of defense contracting in the 1950s and 1960s, it became apparent to the Defense Department that as projects get larger and more complex, it becomes increasingly difficult to track what is happening on them. This problem is compounded by the fact that these large projects are being carried out in multiple contractor organizations, each of which employs its own peculiar planning and control system
Due in part to globalization, businesses around the world now require a large degree of project management and innovation. Project management enables companies to maintain their competitive position relative to peers in the industry. To maintain this position management must ensure that time and costs are controlled throughout the duration of the project. This is a critical element as it helps to determine the overall financial performance of a department