Earned Value and Why it Doesn’t Work
Summary: For many companies looking to improve project performance, Earned Value Analysis (EVA)seems a logical technique to use on projects to better understand and manage performance. Procedures are written and some training provided. The Project Managers are then told to start using earned value, with the management expectation that project results will soon improve. Usually about a year later reality sets in. No improvement is achieved, project management costs are up and people are complaining about all of the ‘extra paperwork’.
The company then either decides to drop use of earned value, or brings in a consultant to help figure out what corrective actions should be taken to get earned value ‘back on track’. The author has been this consultant for companies, and this paper will cover the ‘Dave Letterman’ list of the top ten pitfalls that can make the use of EVA unsuccessful, along with suggested corrective actions that can be applied to projects to counter these hazards.
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Subject Matter Expert: Joseph A. Lukas, PMP®, PE, CCE
Joe Lukas is Vice-President of PMCentersUSA, and leads a team of instructors and consultants in delivering project management and business analysis training and consulting to clients across the country. Joe has been involved in project management for over 30 years and has worked in engineering, manufacturing, construction, project controls, estimating and contracting, and has been a Program and Project Manager supporting world-wide programs. His project management experience spans information systems, product development, capital construction and manufacturing projects. He is a registered Professional Engineer, Project Management Professional and Certified Cost Engineer.