Business Finance
Discuss your understanding of EVM using concrete examples.

Question Description


Reading requirement: Quality Management by Summers e-Book - BvD Pearson Vol 2 ISBN 9781323611395 You must cite from this book

Please read chapters 1-2 from the Summers textbook.


Your company has discovered that it must confront its chronic project cost problems head-on in order to operate profitably. As part of cost control measure, you will use the earned value management (EVM) technique to plan and track performance of the newest set of projects. Your company has determined that project managers must have a deep understanding of cost management.

Discuss your understanding of EVM using concrete examples.

How does EVM impact project quality?

Describe how you would use EVM to determine whether a project is being completed within budget

Please write in APA. 2 pages are good. i Will pay as tip of 25$ at the end of the question once you submit a quality paper. Am from tilbourg university doing information technology so write a paper that meets university standards. Kindly do not bid a price higher than 1$, ofcourse thats not the payment, am assuming i havent paid, i just hope not to recieve showdy work. thank you

Final Answer

Attached.

Earned value management refers to a method of measuring the progress of a project by way of finding
variances by comparing the work that has been executed to work that has not been done. The tool is
adopted in the schedule and cost control of the project which facilitates activities such as forecasting,
the project among others. The project baseline is an example of a component that should be included in
all earned value management operations as it is a means of providing data that can be tabulated when
working on a given project. It therefore comes handy during all the decision making processes. An
example of an earned value management in a project is when there is a 10 month road project that
needs to spend $250,000 per month for a total of $2.5 million until completion. Two months after the
project started, the project has underspent the money by 50%. At that time, the assumption is that the
work is progressing well as it has used less cost than what was estimated it should use. Completing the
work in 10 months means that the earned value of the project was 10% of the $2.5 million for the total
budget.
Influence of EVM on project quality
EVM is used to influence the quality of a product in a number of ways. First, the forward pass calculation
in the process is used to calculate the early start as well as determine the late finish dates for the
project. That way, they allow an individual to remain on track to complete their project within the
designated time period.
Secondly, the backward pass calculation in EVM makes it possible to identify the latest start as well as
the latest finish of a project. As a result, it becomes possible to help a project recover even when there
were some delays that made it hard for the project to be started within the given time. As a result,
earned value management makes it possible to ensure that the project progress is observed.
Earned value management makes it possible for ease in management of a project as the progress can
easily be monitored. A combination of calculations are the ones that allows for the progress to be
monitored in such a way. The use of EVP as well as CPM calculations makes it possible to show the
transparency in resource allocation to the sponsors which may lead to even more funding for the
project.
Describe how to determine whether project is completed within the given budget
The project is to design a new widget in 1000hrs. Each work package takes 12 weeks. The end of 6th
week 55% of the work should be done. Number of hours for activities that need to be completed in 6
weeks equals to 550 hrs. It is also possible to translate the hours to money value in dollars. The planned
value at the end of 6th week is 550 hrs. However, assessing the completed progress using 0/100 method
shows only 350hrs worth of activities are completed. The planned value 550hrs, and earned value
350hrs result to an...

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