Earned Value Management
Jerry Robbins, MEng
EVM for Software Projects - It's easier than you think!
Introduction
Earned Value Management or "EVM" is an approach to project management that considers
a project’s current performance to predict its outcome. It helps one
answer this simple question: “Given
your performance to date, will you successfully reach your target?”
EVM certainly helps answer this question. Indeed it can provide early indication of a project's performance, when corrective measures have the greatest impact. However, the practice is known for its overhead.
The principles of EVM, though, can be implemented in relatively light ways, requiring minimal time copying and pasting data, and allowing maximum time examining relevant information and taking meaningful action on it.
In short, EVM is much easier than you think!
EVM Every Day
Perhaps without realizing it, people use the techniques of EVM almost every day. Consider this scenario:
I am driving to a remote office located in a city 240 miles
from home. The drive is on open interstate and markers at every mile
conveniently indicate my current position. At any given point, I can
calculate the miles remaining and use my current speed to determine
when I should arrive. That is, with the given information, I can
know whether I am ahead or behind schedule.
I had planned to drive an average of 60 mph and so allowed 4 hours
for the trip. However, traffic is exceptionally light and moving
very quickly. At two hours into the drive, I pass mile marker “160”
and realize I have averaged 80 mph and I have but 80 miles
remaining. I call the boss and tell him I’m ahead of schedule. Given
the remaining distance and my current speed, I should see him in an hour. My four hour trip will have
taken just three hours to complete and I will not have had to wait
until I arrive to know this would happen.
This is the value of EVM; using information about a project’s current performance to predict its likely outcome. However, this information is rarely posted conveniently on highway signs. So, most often, it goes unnoticed and unused. This study is an attempt to demonstrate how to uncover and use a project’s performance data to assess its health and to positively affect its outcome.
