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.
The project manager must adapt and adjust the PMBOK® Guide in order to balance his or her identified competing constraints while integrating the different management processes needed to deliver the expected result as a cohesive whole. The first part of this article discusses the process of “tailoring” small project management practices. The second part of the article presents a case study of best practices as the project manager responsible for a team of eleven people in an IT department.
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.
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 understanding the article, whereas actual practice using earned value management, schedule performance index, and schedule variance is recommended.
Earned Value Management is recognized within the project management domain as an effective cost and risk management technique. The formulas are not difficult to understand. So if EV isn’t difficult to calculate, why isn’t it more prevalent?
Question: Computing Earned Value (EV) has always been challenging for me, and frankly I don’t see the benefit to my project. I learned to do the math for my PMP certification, but is there a clear and simple way to get the figures, make the calculations and then find a meaningful use for those numbers? My projects keep veering off track and I need a new approach.
Depending on their personality type, some managers are sticklers for details. The more metrics, the better. EVM translates project data into numbers to forward to management, but has less value for the project manager who is running the project day to day.
While PMP prep does a great job of explaining the math of Earned Value Management (EVM), keeping the focus on information needed to pass the test means there is seldom time to go into the subject of how useful EVM can be in the workplace. It is a key tool for running successful projects.
Since the U.S. Department of Defense requires EVM for all of its departments and departmental contractors, there are favorable tax advantages for corporations who can state their profit figures in EVM terms.
EVM provides a common language that the project manager, team and management can use to communicate about how much time and how many resources should be allocated at the first of a project in order to ensure that it will be guaranteed to meet the estimated project metrics of time, cost and quality.
The latest in the ongoing series of articles helping you get “PMP fit” explores the often avoided Project Cost Management knowledge area. To paraphrase a well-known company, just get at it. When you have read this article and completed your studying, you may well be asking yourself why you were so concerned about it…
Project Manager Estimate at Completion (PMEAC) is the official version — it incorporates the project manager’s professional judgment. Readers will be able to use PMEAC to reduce errors in estimates at completion, save time in communicating completion estimate variances, and reduce the confusion around multiple ways to calculate EAC.
Successful business execution is dependent upon having timely and accurate financial information. But too often, little thought is put into how to present the data in a meaningful way. From a project or portfolio perspective, what does a C-Level executive expect to see from the PMO for actionable decision-making?