Project Management: Earned Value Management System Implementation

This report delves into the application of the Earned Value Management (EVM) system within international project management, specifically in the context of the Alternative Technology Association (ATA). It emphasizes the importance of monitoring and tracking project progress to prevent scope creep and ensure quality control. The report highlights the benefits of EVM in providing a rigorous methodology from the planning stage to project delivery, focusing on budgetary requirements and cost implications. It details how EVM enables project managers to measure project progress against planned values, track deliverables, milestones, scope, and time, and implement corrective actions promptly. The report also discusses the advantages and disadvantages of EVM, including its ability to integrate work progress and expenses, facilitate proactive management of scope creep, and track multiple projects. However, it also notes limitations such as its focus on budget and time, the need for constant supervision, and increased cost expenditure. Furthermore, the report outlines the essential data and format for EVM reports, the frequency of project board governance meetings, and the importance of stakeholder involvement. It concludes by emphasizing the role of EVM in informing project decisions and ensuring effective project management.

International Project management
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The Earned Value management system
Monitoring and tracking of the job progress are essential if Kate is to ensure that there is
no scope creep, nor is there any possibility of going against the quality control process. In this
regard, the most efficient methodology that kate can use needs to be rigorous from the planning
stage to the actual project delivery.
In this regard, kate should ensure that there is an accurate and reliable planning stage
before the actual start of the project, on this note, research indicates that there is need to
understand the budgetary requirements and the cost implications of the project. Therefore, fiscal
control may be essential in determining the actual methodology. Nevertheless, to keep
everything in check, Kate may be forced to use the earned value management system.
The earned value management system, in this regard, is essential since it ensures that the
project manager can keep a close eye on the performance of the project. As research indicates,
EVM is a methodology that may be used by a project manager to measure the rate of the project
progress in comparison to the planned value (Nayab, n.d). In this regard, Kate will need to
measure the actual value of the project progress and compare it to the expected value. The
methodology, in this regard, ensures that Kate has a proper track of the deliverables, milestones,
scope, and time, meaning that any corrective action can be implemented promptly. It will, in
turn, limit the ability of the project to induce cost strains and time limitations (Parikh, 2017). In
such regard, from time to time, kate may be forced to calculate the variance in time and cost to
understand the position of the lighting project in terms of the cost and time limitations (Pajares &
López-Paredes, 2011). The methodology, as such, has been indicated to be very important as
compared to the forecasting method where there is an assumption of various factors concerning
the progress of the project.

Nevertheless, to densely understand the importance and the progress status of the project,
there may be a need to consider three appropriate variables in the project progress: the schedule
variance, time variance, and the cost variance (Acebes, Pajares, & Galá, 2014). In this regard, the
three variations usually depend on the status of the project on a specific scheduled date (Sparrow,
2019). To effectively implement the methodology, there is a need to consider the budget cost of
work scheduled, the budget cost of work performed, and the actual price of work performed
The budget cost of work scheduled refers to the price of the work that should have been
completed as per a specific date. The data is usually outlined in the project schedule (Sparrow,
2019). This is dependent on the budget that may have been allocated to the specific work.
On the other hand, the budgeted cost of work performed refers to the cost of the work that
has been performed as per the date in question. A comparison of the two elements provides a
snapshot of the earned value of the project. Therefore, the two aspects need to be equal if the
project is to be assumed to be on track and the tasks have been completed as per the schedule
(Wormley, 2018).An equal value, in this regard, indicates that there is an efficient methodology
that has been implemented in the distribution of cash on the project activities (Giani, 2017).
Nevertheless, it is essential to determine the actual cost of work performed, besides the two
factors, as this indicates the cost that may have been necessary to complete a specific task. It may
also provide an indication of the actual cost that has been incurred over time in review.
Advantages and Disadvantages of EVM
All that indicated, one of the advantages of the methodology is the fact that it ensures that
the management is well prepared to understand the project in terms of the budget and the cost
requirements. As research indicates, the earned value management ensures that the project

manager is able to track the project in terms of the budget line as well as the progress. This is to
say that it integrates the aspects of the work that has been done and the aspects of the expenses
that may be incurred throughout the project lifecycle. This is different from forecasting
methodology which may require additional process to determine the viability of a project.
Secondly, the methodology ensures that the management can easily understand any faults within
the project and as such, take a proactive step in the management of various factors that may
result to scope creep. Therefore, it ensures that there is efficiency in the project execution stage,
limiting the embarrassments that are likely to occur as a result of the various project factors.
Forecasting, on the other hand, is expected to provide an approximation of factors that may lead
to scope creep, limiting the viability of the system (Hansen, 2018). Finally, the methodology can
be used in ensuring that there is a proper tracking process for various company projects (Dantas,
Barros, & Werner, 2013). In such regards, it may ensure that the management can proactively
manage multiple projects in terms of which plan is successful and which one is still behind
schedule.
On the other hand, one of the disadvantages of the methodology is the fact that it is
limited to the budget and time checks (Pajares & López-Paredes, 2011). This, as such, limits the
ability of the project manager to ensure quality control within the project life. Therefore, the
system may ensure that the time allocation and budget requirements are per as the plan, but upon
the project completion, the project manager may find that the quality of work is poor. This, in
essence, may result to cost overruns (Pajares & López-Paredes, 2011). The other disadvantage,
as research indicates, is the fact that it may require the constant supervision of the management.
In such regards, the methodology increases in the time that the management spends on
controlling the project necessities. In such sense, there is a possibility that the use of the system

may result in a rift between the labor force and the management. This means that it might lead to
bitter relations which are likely to affect the company in the long run. Finally, the use of the
system increases the cost expenditure on the project, mainly because of the need to hire
specialists (Sparrow, 2019). The complexity of the system may mean that the labor force may
not be well suited to handle it, increasing the inability to manage the project using internal
resources.
The Data and Format of the Report
There are various vital measurements when it comes to the earned value management
system. In this regard, the data that may need to be presented include the schedule variance, the
cost variance, and the time variance (Sparrow, 2019). All these data outputs, nevertheless, are
dependent on the budgeted cost of work performed, the actual cost of work shown and the
budgeted cost of work scheduled. Moreover, there is a need to present the cost performance
index and the schedule performance index to define the earned value of the project.
It is essential to understand that the data that are used in the report provide a more
nuanced description of the status of the project. The use of specific sources of data such as the
labor and the material requirements does not give an overall indication of the progress of the
project (Wormley, 2018). The stated data, on the other hand, determine if the project is on track
or behind schedule, depending on the earned value.
The Frequency of the Project Board Governance Meeting
The frequency of the meeting depends on the planned milestones, deliverable, and the
project goals. In this regard, it is crucial to understand that the earned value management system
will be used in providing an outline of the project progress in terms of the monetary requirements

and the timeline deliverables. This, in essence, means that there is a need to ensure that all the
stakeholders are involved, especially a representative of the local groups and the project
manager. However, it is essential to understand that there is a need to maintain the meetings at a
minimal to ensure that there is full implementation of the project goals. The urgency in the
meetings, nevertheless, may come about as a result of scope creep. In this regard, it is up to the
project manager to ensure that the board is well aware of the situation before the actual meeting.
This makes it essential for each board meeting to include the project manager. The
representatives, on the other hand, represent the needs of the local community, meaning that they
are essential in determining the course of the project.
Format of the Report
The report will need to have an introductory to the various representations of the EVM.
The EVM dictates the course of the project, and as such, the values that are obtained from the
system are used to represent the value of the project. An understanding of the values, as such,
provides a platform from where the board may decide upon the scope of the project. This may be
in terms of increasing the materials, altering the course of the project, or even growing the
monetary resources for the project. After the identification, there is a need to state the best course
of action. The format, in this regard, presents a proactive process to the management of the
project.

References
Acebes, F., Pajares, J., & Galá, J. M. (2014). A Project Monitoring and Control System Using
EVM and Monte Carlo Simulation. Project Management and Engineering Research, 31-40.
Dantas, A., Barros, M., & Werner, C. (2013). A Simulation-Based Game for Project
Management Experiential Learning.
Giani, F. (2017, January 4). The added value of project management: The business perspective.
Retrieved from www.p3mo-team.org/EN/added-values-of-project-management-the-business-
perspective/?lang=en
Hansen, B. (2018, October 7). What is a program manager vs. a project manager? Retrieved
from https://www/wrike.com/blog/program-manager-vs-project-manager/
Nayab, N. (n.d). A Comprehensive Guide to the Project Monitor and Control Process. Retrieved
from https://www.brighthubpm.com/monitoring-projects/124945-collection-of-guides-and-tips-
to-improve-the-project-monitoring-process/
Pajares, J., & López-Paredes, A. (2011). An extension of the EVM analysis for project
monitoring: The Cost Control Index and the Schedule Control Index. International Journal of
Project Management, 29 (5), 615-621.
Parikh, V. (2017, January 4). Advantages and Disadvantages of Earned Value Management.
Retrieved from https://www.letslearnfinance.com/advantages-and-disadvantages-of-earned-
value-management.html
Sparrow, P. (2019). Earned Value Management: Advantages and Disadvantages. Retrieved from
https://www.ianswer4u.com/2011/12/earned-value-management-advantages-and.html

Wormley, R. (2018, October 18). Eighteen ways to improve your project management skills as a
small business owner. Retrieved from https://wheniwork.com/blog/project-management-skills/