Project Management in Government: An Introduction to Earned Value Management
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Transcript of Project Management in Government: An Introduction to Earned Value Management
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Project Management in Government: An Introduction to Earned Value Management
Young Hoon Kwak, Associate ProfessorThe George Washington University
Frank T. Anbari, Clinical ProfessorDrexel University
July 2010
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Overview
What Is Earned Value Management (EVM)?
Using EVM at NASA
Applying EVM in other agencies
Resources“. . . a powerful methodology that gives the executive. . . the ability to visualize a project’s status at various points during the project lifecycle. . .. .”
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What is Earned Value Management?
EVM is a project management methodology for measuring financial and project performance.
EVM is comprised of assessment criteria in 5 categories:- Activities that define scope of work, assign responsibilities.- Activities for planning, scheduling, budgeting, and authorizing work.- Activities to accumulate the costs of work, and the materials needed- Activities to compare budgeted, performed, and actual costs, and
variances- Activities to incorporate changes to scheduled, budgeted, authorized work.
EVM can also be used to forecast estimated “time to completion”
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Components of Earned Value Management
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Using EVM at NASA
NASA directed use of EVM in its contracts starting in 1997. All contracts above $20M must be EVM-compliant. Contracts above
$50M must be formally validated and accepted that they use EVM.
Was difficult to implement consistently.
NASA committed to training and certification.
“NASA currently has a significant infrastructure of processes and requirements in place that enables robust program and project management.”
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Critical Success Factors in Using EVM at NASA
Invested in use of EVM, via policies and procedures
Developed detailed clearinghouse for training
Dedicated team to monitor deployment, ensure funding
Single IT system for tracking and reporting
Trend analyses conducted throughout lifecycle of project
Consistent reporting structures, documentation
EVM used to make decisions, funding, and schedule modifications
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Using EVM Across the Government
Federal government adopted use of EVM in late 1990s.
Most frequently used in engineering and construction projects- NASA is a project-driven organization that receives substantial value from
using rigorous project management techniques
Other government agencies organize around projects. They could benefit from a similar senior leader dedication to use of EVM
EVM can change an organization to create a learning culture, recognize expertise, and encourage more collaboration.
Can be an important component to managing costs
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Resources
“Project Management in Government: An Introduction to Earned Value Management (EVM)”- For free copies of this report, visit the IBM Center for The Business of Government Website
www.businessofgovernment.org
Report Authors:
Young Hoon KwakAssoc. Professor of Project ManagementDept of Decision SciencesThe George Washington UniversityWashington, DC [email protected], (202) 994-7115
Frank T. AnabariClinical ProfessorSchool of Technolgy and Professional StudiesDrexel UniversityPhiladelphia, PA [email protected] (215) 895-0928 presentation prepared by John Kamensky