BUS 517 Strayer University EVM Performance Measures Discussion Your Project Sponsor pulls you aside and admits that he has no idea what earned value manage

BUS 517 Strayer University EVM Performance Measures Discussion Your Project Sponsor pulls you aside and admits that he has no idea what earned value management concepts (EVM), such as AC, BCWP, and EV mean; he is only concerned that you deliver the project ahead of schedule and under budget. Using the information covered from your readings and other activities, develop a project to educate him, including which EVM performance measures you would educate him on. Provide a rationale for your selection of topics.
After posting your response, respond to at least one (1) of your classmates on their suggestions.

Student’s Response:

Since my sponsor does not know what EVM means, he is most like not concerned with the methods it takes to deliver the project on time. Explaining to him the process might help him for future projects to ensure he is treated fairly. EVM is not just a unique project management process, it is an umbrella for a set of requirements that a contractor’s management system must meet to complete the project:

Relate time phased budgets to specific contract tasks and/or statements of work.
Provide the basis to capture work progress assessments against the baseline plan.
Relate technical, schedule, and cost performance.
Provide valid, timely, and auditable data/information for proactive project management analysis and action.
Supply managers with a practical level of summarization for effective decision making.

Once the contractor’s EVM System is designed and implemented on a project, there are significant benefits to the contractor and to the customer. Contractor benefits include increased visibility and control to quickly and proactively respond to issues which makes it easier to meet project schedule, cost, analysis, and technical objectives. Customer benefits include confidence in the contractor’s ability to manage the project, identify problems early, and provide objective, rather than subjective, contract cost analysis and schedule status. Earned value management does introduce a few new terms. Contractors’ internal systems must be able to provide:

Budgeted cost for work scheduled (BCWS), sometimes called the planned value.
Budgeted cost for work performed (BCWP) or earned value.
Actual cost of work performed (ACWP).
Budget at completion (BAC).
Estimate at completion (EAC) which is comprised of the cumulative to date actual cost of work performed plus the estimate to complete the remaining work.
Cost variance (CV) which is calculated as BCWP minus ACWP. A result greater than 0 is favorable (an underrun), a result less than 0 is unfavorable (an overrun).
Schedule variance (SV) which is calculated as BCWP minus BCWS. A result greater than 0 is favorable (ahead of schedule), a result less than 0 is unfavorable (behind schedule).
Variance at completion (VAC) which is calculated as BAC minus EAC. A result greater than 0 is favorable, a result less than 0 is unfavorable.

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