Practical Connections Assignment
An essential concept I have learned in this course is the Earned Value Management
(EVM). EVM is a project performance measurement technique that integrates scope, time,
and cost parameters, used to measure the progress and performance of a project (Hassan et
al., 2021). To guarantee that projects stay on time financially and temporally, their real-world
application is of utmost importance. While working as a project coordinator in the logistics
and operations sector, I see EVM as an indispensable tool for my anticipated managerial role.
A practical scenario of the usage of EVM was the warehouse optimization project I
engaged in. The central part of the project was automating inventory tracking and
establishing a new layout to decrease order picking times. The project was tricky, containing
many subcontractors, internal stakeholders, and time constraints. First, the team resorted to
simple progress monitoring and conventional ways of tracking costs. Shortly after, however,
we started to run into issues ensuring we were on schedule and within budget, as the cost
reports did not count the value of work completed. That is when EVM was introduced.
Calculating Schedule Performance Index (SPI) and Cost Performance Index (CPI)
using important EVM metrics such as Planned Value (PV), Earned Value (EV), and Actual
Cost (AC). For example, SPI would be below 1.0 if we were behind schedule. Parallel to this,
when the CPI dropped, we identified the overspending. We immediately identified the causes
most often found in the inefficient subcontractor process or scope creep. With these insights,
we could take timely corrective actions such as reallocating resources and scheduling
revisions to control future delays and budget overruns.
EVM’s strength came from its capability to derive simple performance measurements
from complicated project data. Because of this, the project manager could communicate with
project stakeholders effectively, with objective metrics that justified decisions or could adjust
them. Also, EVM facilitated accountability among the team by keeping track of each
deliverable’s progress versus planned value (Stone, 2023). With that in mind, I plan to use
EVM when managing future cross-functional initiatives such as technology integration and
infrastructure improvements. This will give me a definitive means to measure project
performance and forecast project performance with much precision that will assist in my
decision making and reduce potential risks, mainly project delays and cost escalations.
In conclusion, Earned Value Management helps make up for the difference between
planning and execution. It gives a way to evaluate progress in a structured manner, improve
transparency, and take proactive control of the project. This key concept allows me to apply
analytic insight to leading successful projects and will help me immensely in my current and
future roles.
References
Hasan, R., Chowdhury, S. A., & Akter, J. (2021). Construction project monitoring: The cost
and schedule control by the Earned Value Method (EVM). Journal of Technology
Management and Business, 8(1), 1-9.
Stone, C. (2023). Challenges and opportunities of completing successful projects using
Earned Value Management. Open Journal of Business and Management, 11(2), 464-
493.
