Got a tricky question? Receive an answer from students like you! Try us!

Earned Value Management - Essay Example

Only on StudentShare
Author : hillsrachael

Summary

The purpose of this paper is to provide a general idea of Earned Value Management (EVM). Only conveying a basic understanding of a tool that allows both government and contractor to visualize the technical, cost, schedule planning, performance, and progress of a contract, an agreement or promise to do work, which is enforceable by law…

Extract of sample
Earned Value Management

It compares the work finished with the estimates made at the beginning of the project, which gives a measure of how far the project is from being finished. Inferring from the amount of work already put into the project, a project manager can get reasonable prediction as to how much resources the project will have used at completion.
EVM was used in the 1800s as industrial engineers looked for ways to measure performance in factories. The United Stated Department of Defense (DOD), in the 1960s, employed the Cost/Schedule Control System Criteria (C/SCSC) which is now referred to as the Earned Value Management System (EVMS), a recognized function of program management, which ensures that technical, cost, schedule, and aspects of a contract are truly integrated. The DOD used the C/SCSC cost system simply because their contractors ran over budget, lag behind schedule, had no ability to guesstimate an acceptable cause-effect relationship of how cost, schedule or scope impacted multiple and simultaneous projects. As a result, the government requested that contractors were no longer permitted to forecast costs by subtracting project actual costs from the original budget. ...
Download paper

Related Essays

Value Based Management
This project is therefore an effort to find out the importance of value based management and how companies are doing it.…
6 pages (1506 words)
Time Value of Money
Therefore, to make a certain investment, the opportunity costs should be low (David, 1984).…
3 pages (753 words)
Schedule and Cost Control Techniques
(Mochal, 2007)The benefit for this technique is the fact that it takes into account three different scenarios in order to complete the whole picture thus ensuring that project doesn't bring surprises.…
3 pages (753 words)
Risk and value management Report
Value management helps in developing an awareness for value in an organization and also focuses on targets and objectives seeking solutions to function on practical innovative outcomes. In this case, value management would relate to development of value based systems, of aims and methods in the company TechWatt and developing skills and competencies in the staff members.…
7 pages (1757 words)
Managing Project
Work based structure defines the scope and work effort relationship hierarchy of all commercialisation activities on the other hand; Gantt chart indicates general sequence and period that project activities will take. Critical path analysis (network) illustrates logical sequence of all project activities while earned value management technique measure the overall progress and performance of the project from the beginning to the end.…
12 pages (3012 words)
Project Management - Module 3:1- 1:7
Diagnostic metrics are projected to facilitate information in real time regarding a system, and they act as tools for evaluation. “Based on project status information, diagnostic project metrics assess the current state of an ongoing project” (Hendrick, 2005, p.2).…
3 pages (753 words)
Project Management
These activity lists proposes all the scheduled activity which will help to complete the project quickly. Implementation of work package during project leads concurrent work on various different mechanism of a project at the equivalent time by multiple teams. Most of the times, the completion of work package has been overseen by the managers or supervisor or a team leader of a project team. Moreover work packages reduce the activity cost and other indirect costs like cost of material, cost of transportation, cost of labor etc.…
6 pages (1506 words)