Earned Value Management
Incorporating Resource Capabilities to Quality in Earned Value Management (EVM)
Gresola, Sir Charles M. and So, Jemuell Rei B.
BS Industrial Management Engineering minor in Information Technology
De La Salle University I. Introduction
Earned Value Management (EVM) is a proven technique or tool that is widely recognized and accepted to help in managing projects since it lets the manager combine schedule performance and cost performance to answer the question “What did we get from the money we spent?” (Kidasa Software, n.d). Measuring EVM is done by determining the percentage complete and actual costs of a current project. It provides an insight about the possible problems and opportunities that may arise. This allows the project manager to do precautionary actions to fulfill project requirements. By using EVM a project team or a company can quickly respond to problems and issues that can hinder a project in meeting its objectives.
In the context of earned value there are key measurements that a project manager should keep their attention on. Both schedule variance and cost variance gives a project manager an overview of the project’s status. Schedule variance is the deviation of time in relation to the planned progress and earned progress. This helps the project manager to determine whether the project is behind schedule or if it is on schedule. On the other hand, cost variance is the deviation between earned value and actual cost of the progress. It determines if the current progress of the project is already over budget or not.
There is a study done by Mir and Pinnington that tries to link project management performance and project success. “Critical Success Factors is a tool for highlighting key strengths and factors” (Andler, 2008). It can distinguish internal (controllable) and external (uncontrollable) factors. Mir and Pinnington determined factors that will encourage project success which are called critical success factors. These factors
Gresola, Sir Charles M. and So, Jemuell Rei B.
BS Industrial Management Engineering minor in Information Technology
De La Salle University I. Introduction
Earned Value Management (EVM) is a proven technique or tool that is widely recognized and accepted to help in managing projects since it lets the manager combine schedule performance and cost performance to answer the question “What did we get from the money we spent?” (Kidasa Software, n.d). Measuring EVM is done by determining the percentage complete and actual costs of a current project. It provides an insight about the possible problems and opportunities that may arise. This allows the project manager to do precautionary actions to fulfill project requirements. By using EVM a project team or a company can quickly respond to problems and issues that can hinder a project in meeting its objectives.
In the context of earned value there are key measurements that a project manager should keep their attention on. Both schedule variance and cost variance gives a project manager an overview of the project’s status. Schedule variance is the deviation of time in relation to the planned progress and earned progress. This helps the project manager to determine whether the project is behind schedule or if it is on schedule. On the other hand, cost variance is the deviation between earned value and actual cost of the progress. It determines if the current progress of the project is already over budget or not.
There is a study done by Mir and Pinnington that tries to link project management performance and project success. “Critical Success Factors is a tool for highlighting key strengths and factors” (Andler, 2008). It can distinguish internal (controllable) and external (uncontrollable) factors. Mir and Pinnington determined factors that will encourage project success which are called critical success factors. These factors