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Earned Value Management Effectiveness

Nov 7

Written by:
07/11/2011 15:40  RssIcon

Proper execution of projects is often hampered by inadequate planning during the initiation phase, which evolves into plans which cannot be managed effectively during execution.  However, even when the planning process is successful, and what is assumed to be a well derived plan is established, project management can still be ineffective.  This is typically the result of not having the capability to accurately monitor and control schedule and/or cost.  There are subtle inefficiencies that occur within projects that are difficult to identify even with experienced project team members.  It is these inefficiencies which can be detected and monitored with Earned Value Management (EVM) when utilized effectively.

Key items to proper utilization of EVM require adequate planning during the initiation phase, establishment of budget and schedule for the entire project scope and plan, implementation of change control as early as practical, and monitoring the execution of the project against the established plan.  Project management and project team members should be properly trained in the use and interpretation of EVM data, and standard reporting formats consistent with the intent of EVM concepts and principles must be adopted.  The following example demonstrates the importance of these EVM items and the effectiveness when properly utilized.

In conclusion, EVM concepts and methods when utilized effectively provide project teams and clients alike with the capability to identify project issues early.  Additionally, trends associated with project performance and progress can easily be analyzed, and recovery options selected in time to be effective.  As with every tool in project management, utilization of EVM must be implemented in a graded approach consistent with the needs of the project

Copyright ©2011 Integrated Consulting

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