Project Management

Project Management Central

Please login or join to subscribe to this thread

Topics: Construction, Earned Value Management, Scope Management
Implementaion of Earned Value Management
Can anybody share their experience of implementing earned value management in their project. What are the main challenges in implementation of same. What is the role of management in the implementation?
Sort By:
The biggest challenge is typically the introduction of concepts that are new to many individuals, especially if they lack formal PM training.

Once the concepts and formulas are well understood, then it is important to tailor the method to the organization needs. Implementing the EVM requires also new or adapted processes and a new or updated cost management plan, and these typically require the endorsement and approval from management.

Last but no least. It is important to note that EVM is not something that will make projects finish on time or under the budget, they measure and monitor project progress - similarly to a patient that has fever - it shows that it has fever at a certain point in time, so corrective actions or changes can be adopted.
Eduard is spot on with his answer. I would add that because you are often exposing stakeholders to new concepts, it is important to clearly define what EVM is, and, what it isn't. You may have to hold some remedial training or mini-workshops to present this approach to pull everyone on board. For me, that was additional time that was well spent.

If you have both local (site) and corporate management to appease, do not assume that their requirements are the same. They most often are not. Define what data each will require as you move through the project lifecycle and that will help you plan for the different metrics and formulas you will need to use while executing and monitoring your projects.

I really like how Eduard used the analogy of a patient with a fever.....Maybe he will let me use that line for future reference??!!

Best of Luck.
Yes Abhishek,
One of our clients, Freeport Indonesia, implemented earned value in their UNDERGROUND MINING OPERATIONS and documented savings over a 4 year period of 64 million USD.

Here is a link to the paper explaining how it was done.

BTW, the General Superintendent who was responsible for actually implementing this was promoted to a VP position. He is now retired and works with our company as a consultant.

Dr. PDG, Jakarta, Indonesia
PS Abhishek, when we implemented it, we never even told management we were doing this. Why? Because management has ZERO patience and it took us almost 6 months to get the program working the way we wanted it to.

We started out with one crew on one shift and then grew it ORGANICALLY moving to all crews on one shift then two shifts then finally the third shift.

This EVM tracking model, which is EXCEL based, is able to generate a "real time" status report within 4 hours of the end of each shift and we are able to do it with only 1.5 full time dedicated project controls staff per shift.

If you wish, you can download pretty much the same Excel template they used to build the Freeport reporting system here- Line Item #34

Dr. PDG, Jakarta, Indonesia
Biggest problem is resistance to change. if they are not following proper project management.
Secondly once they are trained then tailored the method according to need of organization.
Thirdly EVM only provide information that how much a project is deviated in cost and schedule from any point of time
The biggest issue we have with EVM is in properly assessing earned value. Different team members may have different views on how much of the work is completed.

Accurate earned value is important on a fixed price project, as Finances use it to figure out ETC and EAC.
I think reporting earned value in many project scheduling tools is usually not easy. Also, if we are not applying the correct measures for capturing performance, your EVM results will not be accurate.

Please login or join to reply

Content ID:

"It is best to keep your mouth shut and be presumed ignorant than to open it and remove all doubt."

- Mark Twain