How do you apply Earned Value Management Successfully?

1. How do you apply Earned Value Management Successfully? When should Earned Value Management be applied in a construction project? The most accurate answer is: every construction project Every construction project considers two key concepts in Earned Value Management viz. •Measurable work improvement •Build a performance measurement baseline or PMB to track and evaluate the performance Listed below are some benefits of Earned Value Management •Easy to adapt and understand •Simplifies construction project management •Highly scalable •Can be applied at various levels viz. program, project, and portfolio •Helps project managers make informed decisions based on an accurate forecasting ability

2. •Fast project execution based on systems supported by Earned Value Management Systems (EVMS) What are the prime building blocks of Earned Value Management? •Earned Value Management works on certain work principles or blocks viz. •Defining an accurate Work Breakdown Structure or WBS •Identify the organization & its stakeholders •Add various project subsystems •Evaluate overheads •Integrate WBS & OBS What is a Work Breakdown Structure? Work Breakdown Structure can be simply defined as breaking down a large project into manageable sections viz. work packages The WBS serves as a principal focal point for •Scheduling •Budgeting •Controlling •Project Planning •Monitoring •Using WBS, accurate estimates can be projected Characteristics of a well-planned WBS can be listed as – •The 8 – 80 rule –professional practices suggest that each work package should not be less than 8 hours of effort & should not exceed 80 hours of effort •Rule of 100 % - the WBS needs to cover the entire scope or 100% defined scope •Must be well presented– the WBS has to be transparent, clear, and well-presented either as a list or tree structure •Build a WBS dictionary – a WBS dictionary supports the formation of a robust Work Breakdown Structure •Coding your work –a well planned WBS needs unique coding to control & monitor the project •Forming a great team –build a great cross-functional team to develop good quality WBS

3. •Progressive monitoring & evaluation – developed as the scope evolves through a perpetual progression When is the WBS prepared? •The WBS is immediately prepared after the project scope is finalized •It evolves based on the scope definition •The WBS gets updated when a schedule is developed Who is responsible to create the WBS? •The Project Manager is responsible to create a robust Work Breakdown Structure with a cross-functional team How is the WBS prepared? •Identify the scope and objectives of the project •Identify the PBS or Product Breakdown Structure or the complete Product Scope is broken down into smaller units •For example, a PBS for a construction project can be broken down into – living spaces, exterior, etc. This further can be broken down into dining rooms, visitor rooms, bedrooms, car porch, main gate, garden, etc. •Identify the Work Package or understand how the product is going to be built •Build WBS levels •Build WBS dictionaries to answer critical questions viz. I. What are predecessor activities? II. What are successor activities? III. What are the standards that need to be followed? IV. What are the precautionary measures that need to be followed? V. What are the solutions or instructions to deal with unseen circumstances? What is Organization Breakdown Structure? •Project strategies are based on planning, organizing, and delivery of large and complex projects •An organization contains various people or stakeholders with multiple interests •An OBS contains roles and responsibilities that need to be allocated accurately throughout the project lifecycle Steps to create a successful OBS

4. •Identify key stakeholders and project managers in the organization •Prepare a robust project execution plan •Develop an OBS for the project •Identify requirements based on project controls •Join the WBS with the OBS •Build a Responsibility Assignment Matrix or RAM – identify the roles and responsibility of each person I. In a RAM the column lists the tasks, and the row lists the people or stakeholders II. It is also known as a RACI chart viz. Responsible, Accountable, Consulted and Informed III. Responsible – Person or Persons responsible for tasks IV. Accountable – Person or Persons who are accountable to complete the tasks V. Consulted – Knowledge and expertise to complete the task successfully VI. Informed – Person who needs to be apprised or aware of its successful completion •Enhance the OBS, WBS, and various Control Accounts Wrapping it up •Building projects are undertaken based on high-risk conditions, and they hold a high risk during the construction stage •As cost & time are key indicators on project outcomes, it is important for project managers to plan, control, and monitor project progress for effective implementation of construction projects •In terms of EVM, key drivers to monitor performance are budgets and schedules •The adoption of EVM in the planning phase has a significant impact on the monitoring and control phase •EVM is a well-known method that collects and analyzes large information stacks to monitor project progress For more information: +91 7350255855 Visit us: - https://nibt.education/