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)? Considerhow you would pitch EVM to your manager. Describe the value as if youwere trying to convince management that EVM is a measure yourorganization should be using for project management.

POST1:

Earned Value Management (EVM) is a method that determinesthe value a project has gained during the project, as well as at theproject 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 resourcesevaluate project performance and development. Additionally, EVM predictsfuture project performance by comparing patterns and trends against anestablished baseline.

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

Overall, any project can benefit from EVM in that EVMworks like an early warning system to alert the project management groupto issues in the project. For example, a portion of a project requiresthe purchase and installation of a software package on the centralserver. However, a week into that installation process, the progress isnot as far along as expected. It could cause the project to run overbudget and behind time if it is not corrected immediately. Anestablished baseline and EVM for this particular task will reveal thisissue.

References

Bergerud, C. (2015, February). Selling executives on the predictive powers of EVM. PM Network, 29(2),59. Retrieved fromhttps://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:

Thebiggest goal for any project is to not only finish the project, but alsocomplete the project that is within schedule and cost. A tool is neededto see how well a project is doing Earned value management (EVM) is atool to assess how well a project is doing. The project team can use EVMto determine if the project is within schedule and cost. Riskmanagement is not the only thing that the project team needs to worryabout in the project. Cost and schedule can greatly affect a project.Earned value management needs to go along with risk management becauseEVM can be used as a risk management tool (Fleming, & Koppelman,2002). By combining a risk assessment and EVM the project team cannecessary adjustments to bring the project back within schedule andbudget.

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

Reference

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