Applying-Earned-Value-Management-successfully – WorkAsOne
When is Earned Value Management (EVM) applicable?
We say: in every single construction project.
We are not the only ones who think so.
Association for the Advancement of Cost Engineering (AACE), being more function and detail-oriented, addresses this at length in their Recommended Practices. AACE defines two key concepts in EVM: 1) measurable work progress; and 2) a focus on planning to establish the performance measurement baseline (PMB) against which performance will be tracked and evaluated. AACE’s five guidelines form the foundation for the quality planning process and are identified as one of the two key concepts of EVM, namely:
1. Define Work Breakdown Structure
2. Identify Organizations
3. Integrate Subsystems
4. Identify Overhead Control
5. Integrate WBS and Organization Breakdown Structure
AACE then addresses how to generate and analyse EVM information on a routine basis. The guidelines specify at least monthly reporting although some programs receive reports and perform analysis more frequently.
But to start with, what is EVM? Why is it so useful as a measuring and monitoring tool? Let’s understand the basics.