Earned Value Management (EVM) is a project control process based on a structured approach to planning, cost collection and performance measurement. It facilitates the integration of project scope, time and cost objectives and the establishment of a baseline plan for performance measurement.
Many organizations today are implementing an Earned Value Management System (EVMS) and, for the majority of these companies, it is their first time doing so. Government standards have driven this demand by requiring organizations bidding on government contracts to embed cost management and earned value management principles, techniques and tools into their project delivery.
The establishment of a Performance Measurement Baseline (PMB) is essential to conducting successful EVM and consists of:
- Defined scope and assumptions
- Activities scheduled in logical sequence
- Resources / costs (labour and materials)
(APM Body of Knowledge 5th Edition)
Many consulting organizations that ‘specialize’ in implementing EVMS often deploy a one-size fits all approach, which for many, leaves the organization with an over-engineered and unwieldy system. We recognize and understand the major differences between meeting contractual government guidelines and standards, implementing on a single project basis, and undertaking a challenging, true enterprise deployment.
The successful implementation of an Earned Value Management System and the adoption of EVMS principles can result in better visibility of project/program performance, which gives you better control.
If you would like to learn how our consultants have helped other clients, call ACME Projects today.