How can EVM help you manage project scope?

1 Benefits of EVM

EVM can help you manage project scope in several ways. First, EVM can help you establish a clear and realistic baseline for your project scope, schedule, and budget, based on the work breakdown structure (WBS) and the project charter. A baseline is a reference point that you can use to measure and report progress and performance. Second, EVM can help you monitor and control scope changes, by showing you how they affect the project schedule and cost. You can use EVM to evaluate the impact of proposed changes, prioritize them, and decide whether to approve or reject them. Third, EVM can help you communicate and report scope status, by providing you with quantitative indicators and visual charts that show the project performance and variance. You can use EVM to inform and align stakeholders, as well as to identify and address issues and risks.

2 How to use EVM

To use EVM effectively, you need to follow some steps. First, you need to define the project scope, schedule, and budget, and create a WBS that breaks down the project into manageable tasks and deliverables. Second, you need to assign a monetary value to each task and deliverable, based on the estimated effort and resources required. This is called the planned value (PV). Third, you need to track the actual work completed and the actual cost incurred for each task and deliverable. This is called the earned value (EV) and the actual cost (AC). Fourth, you need to calculate the schedule variance (SV), the cost variance (CV), the schedule performance index (SPI), and the cost performance index (CPI) using the following formulas:

SV = EV - PV

CV = EV - AC

SPI = EV / PV

CPI = EV / AC

Fifth, you need to analyze the results and take corrective actions if needed. A positive SV or CV indicates that the project is ahead of schedule or under budget, while a negative SV or CV indicates that the project is behind schedule or over budget. A SPI or CPI greater than 1 indicates that the project is performing better than planned, while a SPI or CPI less than 1 indicates that the project is performing worse than planned. You can use EVM to forecast the project completion time and cost, as well as to estimate the scope at completion.

3 Tips and best practices

To make the most of EVM, you should follow some tips and best practices. First, you should update and review the EVM data regularly, preferably on a weekly or monthly basis, depending on the project size and complexity. Second, you should use EVM in conjunction with other project management tools and techniques, such as scope statement, scope management plan, change management plan, risk management plan, and stakeholder management plan. Third, you should use EVM as a guide, not as a rule, and consider the qualitative aspects of the project scope, such as customer satisfaction, quality standards, and business value. Fourth, you should use EVM as a communication and collaboration tool, not as a blame or reward tool, and involve the project team and stakeholders in the EVM process and decisions.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?