An Integrated Exercise to Teach Earned Value Management

Abstract

Earned Value Management (EVM) provides the basis for assessing work progress against a baseline plan, relates technical, time and cost performance, and gives managers a summary of effective decision making. It is a useful technique for objectively measuring project performance and progress. This paper discusses developing and implementing an integrated example problem that can teach students the effective use of EVM techniques. This approach is designed to deepen student understanding of the basic concepts of EVM, from initial project planning through execution, including data analysis techniques and baseline revisions. Successful implementation of EVM requires an understanding of important project elements, including requirements, schedule, budget, assumptions, constraints, and objectives, and therefore reinforces many of the key project management concepts students study in our courses. Implementing the integrated example aims to inspire an appreciation for the earned value concept and emphasize how performance measurement techniques can be a valuable management tool for analyzing cost and schedule performance.