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On the Subject of Earned Value Management

 

and some recently cited examples

 

LETTER TO THE EDITOR

28 April 2023

Ref: Giammalvo, P. D. (2023). Applied Earned Value Management Based on “Cost Engineering Principles”- With Practical Case Studies for Validation Purposes, PM World Journal, Vol. XII, Issue IV, April. https://pmworldjournal.com/wp-content/uploads/2023/04/pmwj128-Apr2023-Giammalvo-Applied-Earned-Value-Management-based-on-Cost-Engineering-Principles.pdf

Dear David,

I would like to add the following comments on some of the ideas in the article by Dr Paul Giammalvo (Dr PDG) on Earned Value Management (EVM) in the April edition of PM World Journal.

The first issue that he addresses is the existing resistance to the wider adoption of EVM. As he has shown in the multiple references he provides, the foundational concepts of scientific management and “payment for performance” predate the development of EVM which was formalised in 1967. The goal of EVM to provide a standardized, objective, action-oriented measure of progress towards well-specified results critical to the success of a project. However, although the techniques and algorithms of EVM can provide the necessary information, there are two major operational challenges to its use. The first challenge requires avoiding excessive administrative overheads, so that the people involved can generate and analyze the relevant data efficiently. The second challenge, as Dr PDG shows in his introduction[1], is to ensure that this analysis is action-oriented and that the corresponding actions can be carried out whatever the political pressures.

One strength and weakness of EVM is that is that it requires the existence of a formalized project planning process including such artifacts as a detailed list of tasks with their dates, resource lists and budgetary information. The adoption of EVM therefore has the positive result that it ensures the existence of a broad, effective project management framework in the organization. As such, therefore, as I explain next, two of the three “experiments” that Dr PDG describes in his article cannot be characterized as valid examples of EVM.

More…

To read entire Letter to the Editor, click here

How to cite this work: Piney, C. (2023). On the Subject of Earned Value Management and some recently cited examples, Letter to the Editor, PM World Journal, Vol. XII, Issue V, May. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/05/pmwj129-May2023-Piney-evm-and-recently-cited-examples-Letter-to-Editor.pdf

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With best regards,

Crispin (“Kik”) Piney

South of France

[1] “Program leaders need to stop the bleeding and redirect budget resources when EVM analysis shows that progress is too slow, too expensive, and fails to meet performance goals or provide timely, reliable information.

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