Earned Value Management

Earned Value Management

Introduction

Earned Value Management (EVM) got developed in the 60s as a financial analysis techniques. It became popular in the next four decades as a Technical Project Management. Today is also known as a Technical Program Management. EVM got adopted by the National Aeronautics and Space Administration (NASA), the Department of Energy United States Department of Defense (DoD). In the last three decades got widely adopted by managers and international executives. The ANSI/EIA-748-B-2007 has standardized the use of the Systems Earned Value Management (EVMS) that got adopted in many countries for their procurement programs and procurement.

EVM mainly covers the three most important knowledge areas of Project Management: Scope Management, Cost Management and Time Management. EVM unifies these three areas into a common conceptual framework to represent mathematically the relationships between them. Although EVM is not known to be so strong in further fields, for instance, Project Management Stakeholder Management, could be employed to radically progress project sensation ratio, when complemented along with additional methods of project management.. In such paper, we will evaluate the article,” Applying Earned Value Management to Software Intensive Programs” which is written by Bob Hunt, and was published on April/16/2009 at www.plastics.com.

Discussion

Earned value management is a method of project management for planning and control of time and budget. Earned value management provides an objective measure of how much work got done in a project in relation to time and budget. Earned value management allows the project manager identify performance trends and early detection of variations in timing, and costs, which allows to implement corrective measures (Hunt, 2009).

Only results count - expenses are costs, but still no result. Over-optimistic expectations about the real progress of the project in this way revealed soon - wishful thinking is a thing of the past. The EVM indicators ...