Running head: Project Budget Development and Earned Value Management 1

Feasibility Assignment

Project Budget Development and Earned Value Management Feasibility Assignment

DeVry University

August 3, 2022 

Introduction

In order for project managers to fully utilize the many tools provided by the Earned Value

Management (EVM), it helps to understand and identify the benefits that an Earned Value Management can offer. First, an Earned Value Management (EVM) refers to a project management method that takes into consideration many things first of which it integrates schedule along with the costs, and not to forget the scope which is used to measure the project’s overall performance and these variables are usually, not all the time, but usually based on the planned values and actual values which brings me to my next point. Earned Value Management (EVM) predicts future and also have the ability to enable project managers to adjust to these changes or to whatever changes may occur in a convenient way.

My current project consists of a software and web application development and deployment startup company. Fortunately for the company, there is not much money that needs to be invested into this startup in order for the company to flourish and be effective. The timeframe however is reliant upon the completion of the initial project. One of the key benefits is that I do not have to be troubled with the daunting reality of having the obligation of paying too many developers, due to the fact that I, myself already am a web developer. I can create my own schedule as I see fit, meaning I am not dependent on a time schedule in the same manner an organization would be held to.

I believe that the Earned Value Management System (EVMS) would surely provide a great deal of efficiency in my project. The reason I believe this to be true is due to a number of reasons in which prove the effectiveness of the Earned Value Management (EVM) and the structure of my project are a perfect match. Although I will be the one in charge, I also hold all accountability and responsibility, meaning it will surely fall on me if tasks do not get completed in a timely fashion. The Earned Value Management (EVM), in my opinion, can actually assist me in my project, especially when asking specific questions such as, “How will you measure the rate of work being completed in addition to the cost?”, or “How can you be sure that the team is completing tasks on time?”. These questions are all key elements that directly relate to the importance of Earned Value Management, one area that could addressed these questions relies on the Earned Value Analysis (EVA), which will effectively allow me to measure the amount of work that is actually being performed on the project. In order to fully provide details regarding how the Earned Value Analysis (EVA) will contribute to the project, I must provide what the

Earned Value Analysis (EVA) consists of and brings to the project. The Earned Value Analysis (EVA) is a calculation method that helps you see if your project is within budget and schedule given where you are right now in your project. Neumeyer, A. (2022). I feel strongly that my project could utilize the Earned Value Analysis (EVA) in order to measure the progress achieved, and properly forecast my project’s total cost along with the date of completion.

According to Ecosys, once you’re 20% into a project, your current performance can be used to predict the future of the project with a plus or minus 10% deviation. This powerful predictive capability is made possible by EVM, making it one of the best project cost control measures available. In order to properly explain the following core concepts of an Earned Value Management (EVM), it is important to note that according to Ecosys, “Earned value management is all about measuring and benchmarking against a well-defined plan. Therefore, you can only perform this in organizations with a certain key elements in place. The 32 guidelines defined under the EIA-748 standard discuss, in detail, the fundamental processes and systems for the implementation of EVM. These guidelines are outlined as part of five broad principles. But again, the level of detail and overhead to implement should vary based on factors including organizational maturity, project size and complexity and contractual requirements. Let’s review these principles.”

Conclusion

In conclusion, I am now more than confident in my belief that the Earned Value Management (EVM) is one of the most helpful methods in which I have ever witnessed, not only simply witnessed, but also utilized in a project that was created by me. The techniques in which the Earned Value Management (EVM) has shown me has saved time, costs, and resources. Not to mention, my project has now added an additional layer of structure. The project was initially lacking a sense of organization and trying to calculate time worked, tasks completed, and costs were unpredictable at best. The secondary positive factor is that the EVA will not consume too much effort, not even close when compared to the efforts exerted before the use of the project’s EVMS. This makes the Project Manager’s job much easier, as results will not be as inaccurate as they were beforehand, and as a Project Manager (PM), I feel that I have been provided with a secret competitive advantage when organizing, creating, and completing tasks within projects now. This would not have been possible without the convenience of the Work Breakdown

Structure (WBS).

References

Earned Value Management: EVM Basics | Ecosys. (2022). Retrieved 4 August 2022, from https://www.ecosys.net/knowledge/earned-value-management-basics/

(2022). Retrieved 4 August 2022, from https://www.howtogeek.com/155803/how-to-change-thedefault-paste-setting-in-microsoft-word-2013/

Basic Concepts of Earned Value Management (EVM). (2022). Retrieved 4 August 2022, from https://www.humphreys-assoc.com/evms/basic-concepts-earned-value-management-evm-ta-a-

74.html https://www.pmi.org/learning/library/earned-value-management-systems-analysis8026#: ~:text=What%20is%20Earned%20Value%20Analysis,be%20measured%20by

%20progress%20achieved.

Neumeyer, A. (2022). Earned Value Management (EVM): This Explanation Finally Makes Sense. Retrieved 4 August 2022, from https://www.tacticalprojectmanager.com/earned-valueanalysis/

Basic Concepts of Earned Value Management (EVM). (2022). Retrieved 4 August 2022, from https://www.humphreys-assoc.com/evms/basic-concepts-earned-value-management-evm-ta-a74.html

Earned Value Analysis | WBDG - Whole Building Design Guide. (2022). Retrieved 4 August

2022, from https://www.wbdg.org/resources/earned-value-analysis