Earned Value Method

[soheilpakazad]

Dear Friends,

Could anyone kindly help me with my questions?

1.Why in the US EVM method is compulsory for projects with high capital cost?

2. Is earned value , the best way for controlling construction work in case of project control?

Regards,

Soheil Pak

project engineer

 

[DRWeig]

Hi Soheil,

As far as I know, EVM is not compulsory in the US unless the client requires it. Who is demanding it?

It's certainly a good method, but in my work it comes up very infrequently...

Good on ya,

Goober Dave

 

[IRstuff]

Earned value is not a control method, it's a bookkeeping method. The objective is to be able to measure progress against a plan, as always. The basic goal is to associate project progress with the accumulated cost, "earned" value. By compare the earned value against the planned value, you determine whether you're behind schedule. By comparing earned value against actual cost, you determine whether you're overrun.

But, that's all just shuffling numbers. YOU as the program manager controls the program, not the EVM system, which is a tool, just like your calculator.

And, no, it's not "compulsory," although most companies' program management processes probably require it. However, most companies don't really follo their own processes.

TTFN

FAQ731-376

 

[eyec]

i have heard most government projects use EVM.

 

[soheilpakazad]

Thank you very much for your comments,The US government now mandates EVM techniques on any internal or external project over $20 million

 

[Whitry]

EVM is used mostly for government work, they have tons of different techniques for doing it as well. If you want to learn more there are a lot of videos on it on youtube and google. I think one of them a lady is giving a seminar on it.