Earned Value Analysis to Monitor Project Progress

The case study, Applying EVA to Monitoring a Project, involves a federal contractor, Environmental Services, located in Virginia Beach, Virginia. The contract is afixed cost and on a “design-bid-build” basis to construct a ceremony center on a military base. Fixed cost contracts require close monitoring and control due to the nature of cost overruns and delays in the construction industry. The project manager is Mr. Krish Patel and has the recommendation to utilize Earned Value Analysis (EVA). Earned Value Analysis (EVA) is a project management methodology utilized to control the project by measuring work performance (Gasparotti et al, 2017). Gasparotti et al, 2017, theorize EVA predicts the final cost and duration by comparing the work complete to the plan. Additionally, Gasparotti et al. present EVA serves as a warning tool to identify and control problems before they become critical (2017). Byrde et al. (2018), state EVA “gives a more complete picture as to the reasons for and consequences of over-spend, under-spend, early and late delivery” (p. 474). It is important for the design of the EVA to be fit-for-purpose, highlight uncertainty within the project, and present the importance of value amongst the stakeholders. Assisting Mr. Patel would include ensuring the design phase prior to bid is accurate and meets the client’s requirements. The design serves as the foundation for preparing the EVA.

Sharing the EVA with knowledge experts will help to establish the correct tasks and durations to determine resource requirements and project cost. Once the bid is complete the monitoring costs and performance must commence immediately to ensure the project remains on schedule. Using EVA to measure costs and schedule performance provides for the early detection of performance issues and allows for corrective action taken in a timely manner (Zhan et al., 2019). Performing a risk assessment plan is another vital tool the project requires to be successful. Understanding what areas within the project life cycle present the most risk allows for mitigation or avoidance. Given the nature of the project, key elements are at risk. Planning must provide alternatives to inclement weather, especially during the winter months when concrete work is underway.
Dependence on multiple subcontractors requires identifying alternate contractors with availability in the case of delays, under-skilled workers, quality of work, or purchasing challenges. Monitoring the deliverables for scope creep is also important to ensure schedule and costs do not exceed plan. Changes to plan or contract deliverables require a robust change management plan. Lastly, ensuring a robust communication plan will confirm all key stakeholders have the most current information throughout the project. All parties need to be aware of the planning, duration, progress, and status of each task towards completion. Tracking and information will assist with keeping the project on schedule and within budget. Proverbs 21:5 tell us “The plans of the diligent lead to profit as surely as haste leads to poverty” (New International Version Bible). The Scripture passage teaches to spend time planning and budgeting to provide the means to profit. Project managers hastily approaching a project without considering all aspects of EVA and monitoring progress will lead to project failure. Being diligent with planning, scheduling, resourcing, and cost analysis will provide the foundation for monitoring and control throughout the project life cycle.

References

Bryde, D., Unterhitzenberger, C., & Joby, R. (2018). Conditions of Success For Earned Value Analysis in Projects. International Journal of Project Management, 36(3), 474-484. https://doi.org/10.1016/j.ijproman.2017.12.002.

Gasparotti, C., Raileanu, A., & Rusu, E. (2017). The Earned Value Management – A Measurement Technique of the Performance of the Costs and Labor in the Project. Acta Universitatis Danubius. Œconomica, 13(2), 234-247.
https://doaj.org/article/5cc374176adc483b943a7969ee2d63d7

Zhan, Z., Wang, C., Yap, J. B. H., Samsudin, S., & Abdul-Rahman, H. (2019). Earned Value Analysis, Implementation Barriers, and Maturity Level in Oil & Gas Production. South African Journal of Industrial Engineering, 30(4), 44-59. https://doi.org/10.7166/30-4 2030