Bridging the Gaps in EVM
for Effective Project Control
FEATURED PAPER
By Yamanta Raj Niroula, PMP
Kathmandu, Nepal
Abstract
For decades, Earned Value Management (EVM) has provided quantitative metrics to assess performance against budget and schedule and regarded as a valuable technique for cost control on projects. Despite significant growth over the last three decades, there remains a lack of understanding regarding the practical applications and limitations of EVM.
The efficiency of EVM relies on accurate, timely data input and discrepancies can lead to flawed decision-making. EVM assumes all deliverables meet quality standards, necessitating independent quality assurance procedures. As such, EVM alone does not provide a complete picture of project performance. Although it identifies deviations from the plan, it does not clarify root causes or suggest corrective actions.
EVM’s limitations become more apparent as project management evolves with Agile, Scrum and Lean methodologies. The rigid nature of EVM can conflict with the adaptive and iterative processes in Agile environments and its complexity may hamper stakeholder understanding.
To address modern project demands, a more holistic approach integrating EVM with Agile principles data analytics and risk management is essential. This multifaceted strategy enhances project monitoring, providing stakeholders a broader, more informed view of performance.
Keywords: Earned Value Management, Project Management, Agile Methodologies, Scrum, Lean Principles, Project Control, Performance Metrics, Quality Assurance, Quality Control, Cost Variance, Schedule Variance, Planned Value, Earned Value, Actual Cost, Schedule Performance Index, Cost Performance Index, Earned Schedule, Data Accuracy, Forecasting, Project Baseline, Risk Management, Stakeholder Communication, Predictive Analysis, Corrective Measures, Budget Management, Resource Management, Decision-Making
- Introduction
Effective time and cost management are crucial for the successful project execution and the EVM plays a critical role in this process. It provides a quantitative framework for evaluating project performance with a complete view of the project’s status, which enables project managers to make informed decisions. However, despite its broad application and the valuable information it provides, EVM is not devoid of shortcomings.
As project management methodologies evolve with the rise of Agile Scrum and Lean practices, the rigid nature of EVM faces several challenges. These modern approaches emphasize adaptability, customer satisfaction and value delivery, which require a shift away from traditional EVM metrics. Although EVM provides a strong foundation for quantitative project analysis, its inherent limitations can reduce its effectiveness in specific project environments.
The purpose of this paper is to critically examine these limitations and explore the supplementary methodologies to achieve a comprehensive approach to project control.
This paper explores eight key limitations associated with EVM:
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How to cite this paper: Niroula, Y. R. (2024). Beyond the Numbers: Bridging the Gaps in EVM for Effective Project Control; PM World Journal, Vol. XIII, Issue X, October/November. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/11/pmwj146-OctNov2024-Niroula-Beyond-the-Numbers-Bridging-Gaps-in-EVM-for-Effective-Project-Control.pdf
About the Author
Yamanta Raj Niroula, PMP
Kathmandu, Nepal
Yamanta Raj Niroula is a seasoned project management professional with over 15 years of experience overseeing all phases of infrastructure and development projects. His career as a Project Manager/Engineer has involved the successful execution of diverse development programs across various regions, including Nepal, the Maldives, Singapore, Afghanistan, the Philippines, Nigeria, Yemen, Sudan and Ethiopia.
He holds a Master’s degree in Rural Development a Bachelor’s degree in Civil Engineering and is a certified Project Management Professional (PMP®). Yamanta can be reached at niroulayr@gmail.com.
