Project Management Central

Please login or join to subscribe to this thread

Topics: Cost Management, Earned Value Management, Portfolio Management
EV measurement in a governmental organization
Network:154



Dear All

All of us know what is EVM and how to evaluate and measure parameters of it. It's seems easy and no doubt in it.

A contractor can define parameter EV as earning in contract. But how it can be define in a governmental organization that they don't have Portfolio Management and Program Management.
What is the earning of this type of company or organization.

I'm waiting for your advice?
Sincerely Yours
Sort By:
Page: 1 2 next>
Network:1654



Perhaps I did not understand your post but here my comments. If you are talking about Earned Value Method the EV is defined into the method itself. You can not define it as you want. In my case, when working with governmental organizations (I was part of one of them and after that i worked into a consulting firm where we were providers) we use a variation named earned schedule management. You can find references to it inside the PMI EVM Guide and in multiples sites into the internet.
...
1 reply by SeyedReza Moosavi
Feb 24, 2018 4:36 AM
SeyedReza Moosavi
...
Thanks Sergio
Network:736



How is your project going? Is the project team accomplishing the planned work and doing it for less money? Or is the team behind schedule?What can you tell about the health of this project based on the cost curve?All these are questions project managers are frequently asked by management and the customers .
EVM is useful to find answer of these questions.
EVM is a project management methodology for objectively measuring project performance using an integrated schedule and budget based on the project WBS.
For example :- How much work is completed . Earned Value (EV) is the percent of the total budget actually completed at a point in time.EV is calculated by multiplying the budget for an activity or work package by the percentage progress:
EV = % complete x budget
There are other formulae which are useful to measure the performance of Projects.
...
1 reply by SeyedReza Moosavi
Nov 20, 2017 3:37 PM
SeyedReza Moosavi
...
Thanks Shadav
your answer (%Complete x Budget) guide me to a way to how I can consult to that organization.
Network:800



Mr. Mossavi

1. I do not understand why you mention program and portfolio management; they are not directly linked or relevant to EVM calculations on projects.

2. Why does not a government have program and portfolio management? They do program and portfolios but they might not be using PgM and PtM for many reasons.

3. You can use EVM on any project, private or public, for-profit or not for profit --- as long as you plan properly, have work packages, and have cost and schedule information.
...
1 reply by SeyedReza Moosavi
Nov 20, 2017 3:50 PM
SeyedReza Moosavi
...
Thanks Mounir Ajam
1-I mention portfolio and program because there was no way to gain EV directly and I decided to measure it with the benefit from PgM or PfM.
2-Actually you are right, the organization has this management but they have no instruction for it.
3-Yes I will try it, thanks.
Network:1059



SeyedReza -

Don't get hung up on the word "value" as being relevant only in an external, "real money" situation. Even with internal projects where no money changes hands, EVM can still be used.

The importance is to associate a cost to all the work packages within your project's scope as part of building your cost baseline. You also need the ability to report on actual costs as they get incurred in delivering those work packages.

One way to do this if there are no "real costs" is to associate a flat hourly rate per resource. Assuming resources are tracking their time, you can then be in a position to calculate all the usual EV metrics.

Kiron
...
1 reply by SeyedReza Moosavi
Nov 20, 2017 3:58 PM
SeyedReza Moosavi
...
Thanks Kiron

Good advice
Network:105732



I suggest you take a look at Practice Standard for Earned Value Management – Second Edition https://www.pmi.org/pmbok-guide-standards/...-management-2nd

You will find all information needed on EVM, you can use it in any type of project.
Network:91807



Don't let the lack of "revenue" fool you. EVM does not need revenue. You need to compare actual against budgeted numbers. Comparing actual costs versus budgeted costs is relatively easy and has been the standard for EVM. It would be possibly misleading to compare actual revenue against budgeted revenue to show project progress.
...
1 reply by SeyedReza Moosavi
Nov 20, 2017 4:01 PM
SeyedReza Moosavi
...
Thanks Stephan

The differences between budget in contractor side and Client Side confuse me.
Network:154



Nov 20, 2017 6:16 AM
Replying to SHADAV MOHAMMAD ANSARI
...
How is your project going? Is the project team accomplishing the planned work and doing it for less money? Or is the team behind schedule?What can you tell about the health of this project based on the cost curve?All these are questions project managers are frequently asked by management and the customers .
EVM is useful to find answer of these questions.
EVM is a project management methodology for objectively measuring project performance using an integrated schedule and budget based on the project WBS.
For example :- How much work is completed . Earned Value (EV) is the percent of the total budget actually completed at a point in time.EV is calculated by multiplying the budget for an activity or work package by the percentage progress:
EV = % complete x budget
There are other formulae which are useful to measure the performance of Projects.
Thanks Shadav
your answer (%Complete x Budget) guide me to a way to how I can consult to that organization.
Network:154



Nov 20, 2017 6:23 AM
Replying to Mounir Ajam
...
Mr. Mossavi

1. I do not understand why you mention program and portfolio management; they are not directly linked or relevant to EVM calculations on projects.

2. Why does not a government have program and portfolio management? They do program and portfolios but they might not be using PgM and PtM for many reasons.

3. You can use EVM on any project, private or public, for-profit or not for profit --- as long as you plan properly, have work packages, and have cost and schedule information.
Thanks Mounir Ajam
1-I mention portfolio and program because there was no way to gain EV directly and I decided to measure it with the benefit from PgM or PfM.
2-Actually you are right, the organization has this management but they have no instruction for it.
3-Yes I will try it, thanks.
Network:154



Nov 20, 2017 8:43 AM
Replying to Kiron Bondale
...
SeyedReza -

Don't get hung up on the word "value" as being relevant only in an external, "real money" situation. Even with internal projects where no money changes hands, EVM can still be used.

The importance is to associate a cost to all the work packages within your project's scope as part of building your cost baseline. You also need the ability to report on actual costs as they get incurred in delivering those work packages.

One way to do this if there are no "real costs" is to associate a flat hourly rate per resource. Assuming resources are tracking their time, you can then be in a position to calculate all the usual EV metrics.

Kiron
Thanks Kiron

Good advice
Network:154



Nov 20, 2017 10:08 AM
Replying to Stéphane Parent
...
Don't let the lack of "revenue" fool you. EVM does not need revenue. You need to compare actual against budgeted numbers. Comparing actual costs versus budgeted costs is relatively easy and has been the standard for EVM. It would be possibly misleading to compare actual revenue against budgeted revenue to show project progress.
Thanks Stephan

The differences between budget in contractor side and Client Side confuse me.
...
1 reply by Stéphane Parent
Nov 20, 2017 7:20 PM
Stéphane Parent
...
Are you on the contractor side or on the client side?

If you are on the contractor side, your budget is based on the forecasted revenue and expenses for the duration of your contract.

If you are on the client (government) side, your budget will be based on the forecasted expenses over the whole project. (If the business case had savings forecasted, you may have to incorporate that in your budget as a type of revenue.).
Page: 1 2 next>  

Please login or join to reply

Content ID:
ADVERTISEMENTS

Cyberspace: A consensual hallucination experienced daily by billions of legitimate operators, in every nation

- William Gibson

ADVERTISEMENT

Sponsors