StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Earned Value Management - Assignment Example

Cite this document
Summary
The purpose of this paper “Earned Value Management” is to provide a general idea of Earned Value Management (EVM). Only conveying a basic understanding of a tool that allows both government and contractor to visualize the technical, cost, schedule planning, performance…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Earned Value Management
Read Text Preview

Extract of sample "Earned Value Management"

Download file to see previous pages

Inferring from the amount of work already put into the project, a project manager can get reasonable predictions as to how much resources the project will have used at completion. EVM was used in the 1800s as industrial engineers looked for ways to measure performance in factories. The United States Department of Defense (DOD), in the 1960s, employed the Cost/Schedule Control System Criteria (C/SCSC) which is now referred to as the Earned Value Management System (EVMS), a recognized function of program management, which ensures that technical, cost, schedule, and aspects of a contract are truly integrated.

The DOD used the C/SCSC cost system simply because their contractors ran over budget, lag behind schedule, had no ability to guesstimate an acceptable cause-effect relationship of how cost, schedule or scope impacted multiple and simultaneous projects. As a result, the government requested that contractors were no longer permitted to forecast costs by subtracting project actual costs from the original budget. With the EVMS, which includes organized components of the project's schedule, budget estimate and scope of work, the project's forecast costs at completion of the project are more accurately determined (Warhoe, 2004).

However, after nearly four decades, EVM clearly has not achieved its actual or perceived potential. Of the innumerable projects, less than 1% use the EVM application. One reason suggested in the literature for the low usage of EVM and procurement is the contract type selection bias toward cost-reimbursable (CR) contracts. A literature review addressing EVM and procurement, indicate that there are mixed beliefs on contract type selection (Marshall, 2005). The conventional use of EVM with CR contracts were limited to large United States government departments such as the National Aeronautics and Space Administration (NASA).

Today NASA employs EVM to support President Bush's Management Agenda specifically to improve competitive sourcing by providing better historical performance data; to enhance financial performance by helping measurement of performance against the budget; and to advance NASA budget and performance integration by integrating the management of technical requirements, schedule, and budget risks. In contrast, many project practitioners, experts, and literature reviews argue in support of using fixed price (FP) contracts.

Kelvin Yu described how EVM was effectively used with an FP contract to renovate a wind tunnel operated by NASA. For instance, Yu utilized EVM in defining the project scope, developing negotiating tools such as "should cost estimate", and directing and integrating the actual work of multiple contractors working on a project. Quentin Fleming and Joel Koppelman agree because both have noted the efficiency and effectiveness of EVM with FP contracts. Authors are suggesting the use of EVM with FP contracts and provide a sound rationale for their beliefs and claims.

They made a good case for the continuous use of FP (Marshall, 2005). For those such as Karen Evans, an Office of Management and Budget (OMB) Administrator of e-government and Information Technology, who testified last spring before the House Government Reform Committee, EVM has not been of many services. 

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Earned Value Management Assignment Example | Topics and Well Written Essays - 750 words, n.d.)
Earned Value Management Assignment Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/management/1529715-earned-value-management
(Earned Value Management Assignment Example | Topics and Well Written Essays - 750 Words)
Earned Value Management Assignment Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/management/1529715-earned-value-management.
“Earned Value Management Assignment Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/management/1529715-earned-value-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Earned Value Management

Comparing and Contrasting: Project Scope and EVM

nbsp; The other half of the driving force that gets the project completed according to expected quality levels is the Earned Value Management (EVM).... Work Breakdown Structure in Earned Value Management A work breakdown structure forces the project to focus on the necessary work components.... For Earned Value Management, work is broken down according to three variables which also form the base of all calculations.... reas Where Scope and earned value Will Diverge Scope and EVM don't diverge....
3 Pages (750 words) Report

EVM and Project Procurement

hellip; Earned Value Management was developed in 1960's by the Department of Defense.... Earned Value Management foretells not only the magnitude but also the significance of future problems regarding a particular project.... In a research study has proven the link between project success and Earned Value Management.... Earned value minus actual cost gives the cost variance and earned value minus planned value gives the schedule variance in Earned Value Management....
3 Pages (750 words) Research Paper

The Process of Cost and Value Management - Boeing

The paper "The Process of Cost and Value Management - Boeng" describes that the immense gravity of both pros and cons render unable to determine which position to finally take in the matter, which is why I would say that the jury is still out vis-à-vis the notion that Earned Value Management.... nbsp; Now, after determining these facts, we will now look at the strengths and weaknesses of these practices of Boeing in light of the concept of Earned Value Management....
8 Pages (2000 words) Case Study

Assessing Project Performance against Project Baselines

This paper reviews the basic concepts of monitoring project performance and Earned Value Management established in traditional project management and determines whether and how these concepts can be applied for successful project performance monitoring. A project is monitored… This involves collecting actual data, measuring performance, interpreting performance data and identifying trends to initiate process improvements through corrective and preventive actions.... Continuous monitoring This involves Earned Value Management technique is employed to measure the project performance against the planned baselines and to forecast any deviations from the planned activities to bring project variations within acceptable limits....
7 Pages (1750 words) Research Paper

IT Project Management Ch7

To evaluate the performance of any project, the Earned Value Management is quite a significant evaluation practice used in project management (Schwalbe, 2012).... Song that is sponsored by the PMI (Project Management Institute) and CPM (College of Performance Management), is purposed at assisting the project managers to understand and measure the extent of practicing the Earned Value Management technique in project management as well as its practitioners' base....
2 Pages (500 words) Assignment

Earned Value Management in Multi-Projects and Programs

Several studies have shown that the The paper will analyse Earned Value Management by discussing three major objectives.... The other will be to explain the advantages of implementing Earned Value Management for these programs and multi-projects.... Finally yet importantly will be to establish the significance of Earned Value Management data accuracy.... There are five major factors that are considered by an Earned Value Management technique....
6 Pages (1500 words) Essay

Types of the Project Management Policy

The researcher has also outlined Earned Value Management for Multi-projects and Programmes.... In the study, different types of the project management policy are outlined.... hellip; This study outlined monitoring and controlling policy of Multi-Projects management policy.... Advantages and disadvantages of establishing a Portfolio management were outlined in terms of management of the project governance structure....
13 Pages (3250 words) Essay

A Method of Project Performance Evaluation

This paper will discuss the various tools such as critical path method, Earned Value Management and techniques such as risk management, scope identification and many others that help senior project managers track the success or failure of their projects, from project selection to project execution.... If the deliverables were not met, a risk management approach will be useful for this project....
6 Pages (1500 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us