Earned Value Management
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Earned Value: Looking for an Easy Way to Implement It
- by Williams Chirinos, MSc, PEng, PMP
The author presents a practical approach for the application of earned value focused on better project scope definition and project plan creation, both based on results. Project progress is credited only if deliverables are completed or milestones are achieved, increasing the objectivity of project performance measurement and probability of success.
Convincing Project Managers to Use EVM (and Making no Excuses)
- by Jose Barato, PMP
In his practice, the author has encountered project managers who, resistant to change and primarily concerned with successful delivery of their project, have resisted the adoption of Earned Value Management (EVM) practices. He explains the importance of EVM for cost control and demystifies EVM tools, with examples using Microsoft Project® and the open source tool, OpenPPM.
Work in Progress Earned Value Management (“WIPing” EVM into Shape?)
- by Remi St-Martin, PMP and David Fannon, PMP
This article presents a variant on the use of schedule performance index (SPI) and schedule variance (SV) to manage schedule performance and includes a description, rationale, and explanation on how to apply the technique. An actual project, as well as examples, are used to illustrate the value and application of the technique. A basic understanding of earned value management (EVM) is required to understand the article, whereas actual practice using earned value management, schedule performance index, and schedule variance is recommended.
Framework for Integrating Project Quality, Risk Management, and Integration Management Disciplines into Earned Value Management (EVM) for Deriving Performance Based Earned Value (PBEV)
- by Ravi Yerabolu, PMP
Multidimensional project control systems, which integrate the critical to quality metrics of the project quality management, risk management, and program integration requirements into the earned value management system, delivers capability for the enterprise project team(s) in measuring the performance-based earned value of the project deliverables.
Impact of Revenue Recognition Methods in Project Cost Control Through Earned Value
- by Francisco-Javier Rodríguez, MBA, PMP
One of the inputs earned value management (EVM) uses to obtain an indicator about the cost performance of projects is the cost incurred by the project until a certain date. Typically, such information is provided by finance departments. This paper reviews the different methods used by finance departments to calculate and measure the incurred costs in projects, and how these methods may impact the way the project manager applies the EVM to measure, control, and track the status of his or her project.
Profit = Project Management Partners with Finance to Use EVA
- by Ravi Raj Kishore, PMP, CSM, ITIL, Six Sigma Greenbelt, Keane Inc.
One of the best ways of selecting a project is by utilizing economic value added (EVA) methodology. This methodology is also considered a criterion of project acceptance. EVA requires effective collaboration between finance and project management, an alliance that not only enables the project management professionals to understand how the company's finance works, but also allows them to assist business leaders in making better financial decisions.
Innovation on R&D Earned Value IOC/C21 WatchKeeper System
- by Kevin Peterson, UrsaNav
The challenge addressed in this article is using earned value in an IT project of less than US$20 million with multiple solution partners, fixed cost contracts, no labor cost data, and an 18-month deadline. The discussion presents an example of an innovative use of an R&D-based earned value technique. The software project overview is presented, traditional earned value reviewed, the derivation of the R&D approach is discussed, and the article closes with a look at the organizational benefit of the technique.
Implementing Earned Value Side by Side With Critical Chain
- by Gershon Ben-Israel, PMP, BSc
This article focuses on an easy-to-use implementation of earned value management (EVM) and, specifically, cost performance index and estimation at completion - Cost side by side with the Critical Chain Method. The EVM implementation gives a comprehensive answer for budget management and budget report requested by the project sponsor.
Earned Value Management in "Electricity Bill" Type of Projects
- by Sunil Raikhanghar, ITIL, PMP
Earned value management (EVM) is the control tool used for cost control, which is one of the most important areas in project management. It also provides additional useful information for the schedule variance. When used with progress reporting to determine schedule variance and schedule performance index, EVM becomes a highly valuable tool to track both cost and schedule. Budgets for projects with only department-wide budget allocations are analogous to a household electricity bill, having few details.