EVM presentation

ca_bala

Hi,

Here is a short essay on Earned Value Management.

It is a useful assessment tool for project status.

Thanks
Bala

ajaydanait

I feel that the value of the product / application / software to be completed cannot be just the revenue earned by the team who developed it.

In the perspective of the unit that bought the services of the team who built the product is the cost of the product.

The value of the product would be different than the cost spent on building the product.

The approach presented in takes care only about how much is the planned cost / actual cost and earned cost but this is , in my opinion, not the true value of the product or software being developed.

ca_bala

You are right in the sense that EVM does not convey the true value of the product.

This is a general tool for Project Management - to measure the status of the particular project at that particular point in time.

Now, we are not trying to measure the value of the product at all - this is not part of EVM or Project Mgmnt.

Let us always remember the definition of a Project -

"
A project is a temporary endeavor undertaken to create a unique
product or service. Temporary means that the project has an end date.

Unique means that the project's end result is different than the results
of other functions of the organization."

So EVM is for measurement of Project status at a given point in time.

ajaydanait

I think we should call it "Incurred Cost Management" or "Budget Management" rather than "Earned Value Management"

Because it is based on Budgeted Cost, Actual Cost and Forecasted Cost.

The term Value is not used appropriately. Is it the value of the project ? In that case, are we measuring the right thing ? Also, are we measuring the thing right ?

Maybe the EVM concept needs to be re-looked / debated by the entire industry in a forum like this of what is the real value in measuring "earned value" ?