EVM Implementation Guide
This playbook outlines the steps to implement Earned Value Management to track and measure project performance with respect to the project plan.
Step 1: Define Scope
Define the scope of the project, including deliverables and milestones. Establish clear objectives to assess project performance and progress.
Step 2: Establish Baseline
Establish the Performance Measurement Baseline (PMB), which includes the planned schedule and budget for the project’s tasks and activities.
Step 3: Assign Metrics
Assign financial value to every task or work package to quantify the planned value (PV). It will be used to assess work progress.
Step 4: Track Progress
Regularly track the actual progress and the actual cost (AC) incurred. This requires setting up processes to capture work performance data accurately.
Step 5: Calculate EV
Determine the earned value (EV) for tasks completed at specified intervals. This step quantifies the actual work performed against the PMB.
Step 6: Analyze Variance
Calculate the schedule variance (SV) and cost variance (CV) to analyze differences between the planned and actual progress and costs.
Step 7: Forecast Performance
Use EVM metrics such as the schedule performance index (SPI) and cost performance index (CPI) to forecast future project performance.
Step 8: Implement Actions
Based on variance analysis and forecasts, take corrective actions to address issues, mitigate risks, and align the project with its baseline.
Step 9: Review & Update
Regularly review project performance against the baseline and update the EVM analysis to reflect any changes in the project plan or execution.
General Notes
Data Quality
The accuracy of EVM heavily relies on the quality of cost accounting and work progress data; ensuring accuracy is critical for reliable results.
Stakeholder Buy-In
Obtaining buy-in from key stakeholders for the use of EVM is crucial for its successful implementation and use throughout the project lifecycle.