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Earned Value Management

21 Jun

Posted at 20:02h in Earned Value Management
1 Like

We recently received a request to calculate the Estimate at Completion (EAC) for a Project. The request seemed somewhat unusual because the Project Control team was issuing EAC figures every month. The Project was already 80% complete, and the Client wanted a more accurate EAC to justify their request for additional budget. The monthly EAC figures were constantly changing, causing confusion!! It's important to note that the scope of the EAC calculation was specifically for the PMC contractor and not the...

04 Mar

Posted at 10:21h in Earned Value Management
2 Likes

We had a couple posts/ articles about the Schedule Reliability Factor, performance (https://khonopc.com/forecast-completion-date/) and their impact on the completion date.  We have also developed the Khono Analysis Toolkit to undertake analysis based on performance. We have tried to shed some light on the topic in this article. Let’s consider a Project that was planned to be completed in 12 months. After 6 months from the start, the Project has experienced a 3-months delay. Then, the Project team/client requests for a recovery...

18 Jan

Posted at 20:30h in Earned Value Management
0 Likes

In most of the project, the Project control team require to prepare analysis to assist the management team to in decision making. When the analysis gets presented to the team or other parties, there is always argument around the bases of the calculation, data range, asking for more what-if scenarios etc. Also, the available techniques are generally linear despite the S-Curves shapes that are not liner. As a result, it brings more arguments to the table. For example, based on...

26 Nov

Posted at 21:38h in Earned Value Management
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EVM is a well-known concept which seems easy to implement simply because it has only three primary variables. However, in a live project, due to complexity of the data, component and variables, most people fail to implement it correctly. EVM often gets criticised or negatively commented upon that it does not add any value. Some of the criticism is misdirected or has no merit. For example, we often hear that it does not evaluate the critical path and/or it does...

19 Nov

Posted at 21:06h in Earned Value Management
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EVM is a well-known concept amongst people working in the Projects industry. It has a few simple formulas all of which use three primary variables. Much as it is a well-known concept, on the contrary, still not many companies and projects are successful in its implementation.  On most Projects, the Client adds a clause in the contract or procedure, requesting for the implementation of EVM. However, most companies including South African ones and contractors fail in its correct and efficient...

14 Oct

Posted at 19:03h in Earned Value Management
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Implementation seems to be a mystery despite many people alleging to be well versed in it. Not only small projects/ companies but also big corporates are failing even after having taken on board consultants at an astronomical costs to implement. Hereunder are some of the reasons for failure: 1- Many familiarize themselves on the EVM during a preparation to write exams 2- During preparation, it gets taught "WHAT IT IS" and how to use the formulas to only pass the exams ! 3-...

13 Oct

Posted at 07:48h in Earned Value Management
2 Likes

There are several techniques and methods to forecast a project's finish date. Here are three of them: 1- Forecast Date from Schedule2- Risk based, probabilistic Forecast date3- Forecast date based on the performance, using EVM formulas (earler or later than No.2) These could be explained as per the following: 1- Project would finish on the Schedule’s date, if everything goes as per the plan. What is a chance of having everything as per the plan?2- Project would finish on P70/P80 date if the...