Earned Value Management:
Imagine a technique that’s like switching on the floodlights to illuminate your entire project. If you spot any warning signs, this technique allows you to focus a spotlight on the problem area. If that isn’t enough, turn on the Cost Performance Index which is like a crystal ball to predict what your final project cost is likely to be. This enlightening performance measurement technique is called “Managing with the lights on” or Earned Value Management (EVM).
ProjectPro now offers a one-day in-depth EVM technique workshop for the practitioner, in addition to the half-day executive overview. They are available on an in-house basis. The course content is based on the Project Management Institute’s Practice Standard for EVM and will earn delegates seven Professional Development Units (PDU) for PMP® recertification.
EVM gives an early warning
Analysis of thousands of projects has shown that if a project has reached the 15% to 20% stage and is running late and /or over budget, statistically, it will not recover. Why is this so? Surely there’s still enough time to get it back on track?
In the beginning of a project you are managing the flat portion of the S-curve when only a few activities are taking place. In mid-project things get more complex as the steepest part of the S-curve is reached, which is much more difficult to manage. Furthermore, the near term activities of the project normally have less uncertainty than activities further down the project life cycle. So if you don’t take prompt, effective corrective action, your project is doomed.
Earned Value Management gives you an early warning if all is not well. For instance, the people working on critical path activities may be on schedule, but the project manager is unaware that many of the non-critical activities are rapidly using up their float. Too late the project manager realises that the critical path has already jumped to two other activity paths and the entire project is delayed. EVM monitors the schedule performance of every activity and of the project as a whole.
Project management’s best kept secret
There is nothing inherently difficult about the earned value concept. It does not require extensive training to grasp the fundamentals. In fact, many people are using some form of earned value in their daily routines and are not even aware that they are employing the concept.
ProjectPro’s training and consulting efforts promote the earned value concept in a simple manner so that it can be applied to any project, of any size, and in any industry.
For many years ProjectPro has been promoting the benefits of EVM by training our ProjectFlow and Project Management Professional course delegates in the use thereof. Contact Terry Deacon on 082 557 3119 or email firstname.lastname@example.org for more details or to arrange an in-house EVM workshop.
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