PJM480 Peer discussion responses

Please reply to both POST1: and POST2: in at least 200 words

Original Post:

What is the value of Earned Value Management (EVM)? Consider how you would pitch EVM to your manager. Describe the value as if you were trying to convince management that EVM is a measure your organization should be using for project management.

POST1:

Earned Value Management (EVM) is a method that determines the value a project has gained during the project, as well as at the project end by comparing the current value to the expected value. The Practice Standard for Earned Value Management (2011) states that EVM is a method by which scope, schedule, and resources evaluate project performance and development. Additionally, EVM predicts future project performance by comparing patterns and trends against an established baseline.

Bergerud (2015) writes that the use of EVM allows an organization to predict costs at 20 percent of project completion, and there is a good chance that those costs will only change by plus or minus 10 percent. In and of itself, this is an excellent reason to adopt EVM in every project. EVM enables tighter control of costs and timelines, keeping the project on time and within budget.

Overall, any project can benefit from EVM in that EVM works like an early warning system to alert the project management group to issues in the project. For example, a portion of a project requires the purchase and installation of a software package on the central server. However, a week into that installation process, the progress is not as far along as expected. It could cause the project to run over budget and behind time if it is not corrected immediately. An established baseline and EVM for this particular task will reveal this issue.

References

Bergerud, C. (2015, February). Selling executives on the predictive powers of EVM. PM Network, 29(2), 59. Retrieved from https://csuglobal.idm.oclc.org/login?url=https://s...

Project Management Institute. (2011). Practice standard for earned value management (2nd ed.). Newtown Square, PA: Project Management Institute, Inc.

POST2:

The biggest goal for any project is to not only finish the project, but also complete the project that is within schedule and cost. A tool is needed to see how well a project is doing Earned value management (EVM) is a tool to assess how well a project is doing. The project team can use EVM to determine if the project is within schedule and cost. Risk management is not the only thing that the project team needs to worry about in the project. Cost and schedule can greatly affect a project. Earned value management needs to go along with risk management because EVM can be used as a risk management tool (Fleming, & Koppelman, 2002). By combining a risk assessment and EVM the project team can necessary adjustments to bring the project back within schedule and budget.

It is important to use earned value management early on in the project. By doing so the PM will able to make necessary adjustments early in the project to prevent the entire project from going off track. EVM needs to be constantly monitored and adjusted throughout the project. The constant update and managing of both cost and schedule will increase the chances that the project will succeed.

Reference

Fleming, Q. W., & Koppelman, J. M. (2002). Using earned value management: A publication of the american association of cost engineers a publication of the american association of cost engineers. Cost Engineering, 44(9), 32-36. Retrieved from https://csuglobal.idm.oclc.org/login?url=https://s...