International Research Journal of Engineering and Technology (IRJET) Volume: 04 Issue: 03 | Mar -2017
e-ISSN: 2395 -0056
www.irjet.net
p-ISSN: 2395-0072
iEVM (INTEGRATED EARNED VALUE MANAGEMENT) AN APPROACH FOR INTEGRATING QUALITY WITH TRADITIONAL EVM FOR EFFECTIVE PROGRAM AND PROJECT MANAGEMENT Vanshika T Department of Information Technology Barkatullah University, Bhopal
---------------------------------------------------------------------****------------------------------------------------------------Abstract: Earned Value Management (EVM) is a simple would be applied in each of the project phases. yet powerful performance management and feedback tool which provides the project progress in terms of scope, cost and time/schedule. EVM enables project managers in predicting the future of the project from trends and patterns of the past. Though EVM addresses and integrates three critical element of project management – scope, cost and schedule – the quality aspect is not explicitly considered in EVM and is supposed to be implicitly included in the scope. Ignoring Quality explicitly may result in escalated Cost of Quality (COQ) and nullify the efforts put in during monitor and control of projects in traditional EVM. Therefore the aim of this paper is to introduce a new EVM model, iEVM (Integrated Earned Value Management) which integrates Quality along with Time, Scope and Cost as in traditional EVM to monitor, control and predict the projects better and more accurately. The model utilizes the concept of Cost of Quality (COQ) and integrates the same in EVM to make fool proof.
Keywords: Program Management, Project Management, EVM, Earned Value Management, Cost of Quality
1. INTRODUCTION Project management is application of processes, methods, knowledge, skills and experience to achieve specific project goal/objectives. Project is a unique and transient endeavor with specific objectives which are generally defined as outputs or benefits. Project Management discipline has 8 key components: 1. 2. 3. 4. 5. 6. 7. 8.
Stakeholder Management Risk Management Issues Management Resource Management Task Management Quality Management Project Change Management Project Team Management
These project management disciplines are applied in
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In order to manage the projects effectively, ensuring 100% success of achieving planned objectives / goals, project management discipline requires objective tools and techniques to ascertain the status/health of project at any point in time. An experienced project manager has to apply objective tools and techniques across each of the 8 disciplines to measure the performance of project execution and ensure success. This is where Earned Value Management (EVM) technique comes as handy tool to measure the performance of project at any point of time and also predict the future state of project execution based on past trends and patters. Earned Value Management (EVM) is a simple yet powerful performance management and feedback tool which provides the project progress in terms of scope, cost and time/schedule. EVM also enables project managers in predicting the future of the project from trends and patterns of the past. The Earned Value technique takes into consideration the project context for the planned and actual expenditures and integrates the project scope, schedule and resource characteristics into a comprehensive set of measurements. The Earned Value technique allows for the temporary and intermittent nature of project work by scheduling the expenditures based upon the project plan, including the spikes and valleys in resources requirements. Further, Earned Value tracks how much money has been spent on the project in relation to how much project work has been accomplished. This takes into consideration all that has happened on the project such as schedule delays or acceleration. The variances that have occurred can then be separated into those due to timing, either ahead or behind schedule; and those due to mis-estimating the work; true under-runs or over-runs. Finally, the indices and variances generated by the Earned Value technique will aid the project management team in forecasting the financial conditions at project completion. Even though EVM addresses and integrates three critical
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