Earned value management (EVM) is a technique in project management used for gauging the health of a project and also progress by tracking actual cost, earned value, and planned value. EVM is a way of producing objective periodic costs and scheduling performance information across the life cycle of a project. Although EVM is acritical tool for measuring and predicting the health of a project, there are myths that are commonly held with regard to EVM which misjudge its efficacy.
Similarities and Differences of Project Myths and Project Success Stories of EVM
For effective running of projects, it is critical to be fluent in the principles of project management and EVM. Both articles focus on the significance of practices of EVM because it makes the whole project effective and more focused with respect to achieving time frame, performance and cost. It aids in differentiating amid indirect and direct costs as well as taking the right measures for control (Visitacion Margo S., Page No. 75). EVM makes the implemented system to efficient through work packages, control accounts, and work breakdown structures. Lawrence Livermore National Laboratory (LLNL) success story underpins the view which is commonly held that EVM implementation implies that projects would be on track and on time. Anita Zenger, LLNL project control manager, used practices of EVM to controlthe project, as a result, the project was finished ahead of time by 8 months (Custer Keith, PE, 2009).
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The myth that is commonly held asserts that EVM practices are diverse from practices of project management hence successful EVM do not need previous project management knowledge. But the success story of LLNL claims that project management and EVM practices are closely connected. Furthermore, Zenger claims that they used software tools in delineating work packages and work breakdown structure which allowed them to track variations applying corrective measures (Subramaniam Anand, 2009).
EVM practices and principles assist in locating a problem, enhancing project performance, giving information regarding date of delivery and cost hence adding certainty in the realization of the objectives and goals of a project. Additionally, it is used as a tool for forecasting thus being efficient for various kinds of small and large projects. The ‘early warning’ indications are provided by the earned value and are the ones that initiate corrective actions (Subramaniam Anand, 2009). Also, EVM aids in making projects successful because it improves the decision making process that is very significant for successful projects. It enhances consumer relationship, vendor relation and assists in obtaining value for money.
Moreover, the EVM can detect problem indicators and problems early, however, its restorative powers are limited. Zenger claims that EVM can be employed as a tool for risk mitigation. They utilized software tool for integrating cost management function with budgeting information, scheduling plus other earned value computation which enabled them to conduct monthly checks through making comparison of real cost and percentage of completion with estimated budget. As a result, risks were mitigated and cost overruns prevented (Visitacion Margo S., Page No. 51).
Myths of EVM
Several myths have been put forth relating to EVM. For example, often it is argued that EVM implementation implies that a project would be 100% on track and time. But this is not certain. Even though the techniques of EVM gear a project on the path to success, enable a manger to foresee problems with regard to costs, it does not assure the project’s success. It enables sound implementation of plans as well as staying organized (Visitacion Margo S., Page No. 51).
Another EVM myth is that the practices of EVM are different from the practices of project management, however, actually both practices and techniques work simultaneously. Furthermore, so as to get a successful experience with EVM, best project management practices must be implemented. Also, some people hold that effective use of EVM can result in overrun on the costs of a project. Ideally, this does not hold simply because EVM is a tool for identifying problems early enough in the project life cycle so that project managers can be sound decisions in allocating resources in order to reduce the costs and ensure efficiency. Often, kit is argued that EVM methods are ideal for large projects however, the technique is in nature scalable to accommodate any project irrespective of their size (Visitacion Margo S., Page No. 51). During EVM implementation, project managers should define the scale and scope of the project and populate its work breakdown structure (WBS). According to Custer Keith, PE, 2009 there are many other myths like the need for costly new software packages for implementation, change of structure of an organization in order to implement EVM among others.
Conclusion
EVM is an important tool for forecasting and measuring the project’s health. When EVM along with project management techniques couple with best practices are embraced, organizations will have a better opportunity of witnessing variations early enough hence allowing them to make suitable amendments so as to avoid possible pitfalls in the project thus realizing the success of a project (Visitacion Margo S., Page No. 51). Essentially, EVM aids in promoting the ideals of honesty, openness, and trust across an enterprise (Subramaniam Anand, 2009).
References
Custer Keith, PE, January 21, 2009, The seven deadly myths of earned value methods in project management, data retrieved on March 7, 2019 from http://www.projectsmart.co.uk/the-seven-deadly-myths-of-earned-value-methods-in-project-management.php
Subramaniam Anand, July 29, 2009, Earned Value Management, data retrieved on March 7, 2019 from http://www.slideshare.net/anandsubramaniam/earned-value-management-1784592
Visitacion Margo S., Page No. 51, September 2007, Earned Value Management, Debunking commonly held EVM Myths, Management, Exemplary EVM at Lawrence Livermore Labs, Contract
Visitacion Margo S., Page No. 75, October 2007, Earned Value Management, Exemplary EVM at Lawrence Livermore Labs, Contract Management
