Implementing Earned Value Side by Side With Critical Chain
Anyone who has experienced implementing the Critical Chain (CC) Method, a new and revolutionary method for managing projects in an organization, has probably heard this type of message before.
If your organization follows this rule, you’ve probably dealt with the question of how to control the project budget and how to report budget consumption to management.
This article focuses on an easy-to-use implementation of earned value management (EVM) and, specifically, cost performance index (CPI) and estimation at completion – Cost (EACC) side by side with the CC Method using Concerto®1. The EVM implementation gives a comprehensive answer for budget management and budget report requested by the project sponsor.
The assumption behind using EVM for budget management in a CC Method project is that budget consumed does not follow the same rule as time does. Project budget is impacted by budget consumption by noncritical tasks as well as budget consumption by critical tasks. Budget consumed does not differ between critical and noncritical tasks; it consolidates everything!
Imagine crossing a road with a traffic light. When the light turns green, before crossing you had still better take another look to the left and to the right to ensure that the road is clear and safe. For the same reason, you should use the EVM indicator to make sure that buffer
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