Determining Measurement Methods in Earned Value Management
Contents |
Abstract
Earned Value Management (EVM) is one amongst the many types of techniques which can be used to perform monitoring and controlling activities in project management. However, due to its complexity, it includes several topics/steps, i.e. organising project, assigning responsibility, developing schedule and so on. [1]
Overall, it is a very large topic to be discussed in a relatively short article, therefore this document first of all provides a brief description of the EVM technique. Then it aims to give a clear picture of one particular step from the whole process, namely the determination of different methods for measuring the project performance, and the selection strategy of choosing the most valuable and applicable one for the project. As it does not give a detailed insight into the EVM itself, it is highly recommended to be familiar with this management technique. Precise information can be acquired about the EVM here: [link to another WIKI article]. It itemizes the necessary inputs of the measurement and shows various outputs that could be gathered from the calculations. The main part of the article begins with the description of Control Account Plan, which is followed by several classes of work introduced , i.e. the discrete effort, the apportioned effort and the level of effort. In the class of discrete effort certain measurement methods (fixed formula, weighted milestone, percent complete, etc.) are presented in details involving their advantages and disadvantages. Each method is also illustrated with an example to show the elementary steps in practice. Guidelines are provided in the end of the article, with which the ability to choose the best suited measurement technique for a particular project is given.
Introduction to Earned Value Management
In project management, one of the most important sessions is the process of monitoring and controlling projects. The project manager is responsible for tracking the project progress and performance with the help of predefined methods in terms of time and costs spent, and to analyze the value of work performed, in order to find out whether the current state of the project corresponds to the original project management plan. The main benefit of this task is, besides the accomplished insight into the health of the project, the ability to make corrective and preventive steps towards the successful completion of the project.[2]
Earned Value Management (EVM) is one amongst the many types of techniques which can be used to perform these activities. EVM analysis with the usage of the predefined work scope, timeframe for performance of the work, resources and costs, etc. as inputs can be resulted in the so called “earned value” Cite error: Invalid <ref> tag;
refs with no content must have a name. Earned value is the variable that shows us the value of the work performed in a specific point of the time. It is then compared with the planned value, that represents the initially planned schedule position, and the actual spent resources in order to show the current cost position.[3] The conclusion regarding the actual status of the project can be acquired after the comparison, which is a useful output for the management in order to determine the essential further modifications, such as corrective action plans. Furthermore, the forecast of expected project costs can be updated. Cite error: Invalid <ref> tag;
refs with no content must have a name To be able to measure the performance through the project’s duration, specific measurement points are needed. These dedicated control points are included in the Control Account Plan (CAP).
Inputs of the Measurement Process
UNDONE. The following bullet points show what needs to be explained:
- Requirements Documentation
- Statement of Work
- Scope Baseline: (work package is also defined here - according to PMI Standard 158.pp.)
- Integrated Master Schedule
- Project Budget
Control Account Plan
According to Fleming et al. (2010) [4] [3], Control Account Plan is <q>the fundamental building block which forms the project’s measurement baseline.</q> It contains all the planned information which is needed in order to perform the monitoring process, that is to say the measurement of the actual status of work throughout the project. The necessary informations are, as listed by Fleming et al. (2010) [3]:
Annotated Bibliography
- ↑ PMI Practice Standard for Earned Value Management – Second Edition (2011)., Available at: https://www.pmi.org/pmbok-guide-standards/framework/earned-value-management-2nd
- ↑ PMI PMBOK® Guide – Sixth Edition (2017)., Available at: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
- ↑ Fleming, Q. and Koppelman, J. (2010). Earned value project management - Fourth Edition. Newtown Square, Pa.: Project Management Institute, Inc.
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedFleming
