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(EVM-1059) Designing a Tailored Earned Value Management System (EVMS)

Primary Author: Ms Vicki L. Frahm EVP Sandia Corporation

Audience Focus: Intermediate
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: Earned value management (EVM) is an effective performance measurement methodology that integrates project scope, schedule, and cost. Since 2006, the Federal Acquisition Regulations (FAR) has required the use of an ANSI/EIA-748 compliant EVM system (EVMS) on government contracts exceeding agency thresholds - typically $10 - 20 million. Industry, however, has recognized the value of implementing EVM on smaller contracts but struggles to find a value added methodology that meets the intent of the 32 ANSI criteria without imposing the perceived burden of a fully compliant system. Some have recommended an EV-Lite that implements only selected criteria without consensus as to which criteria should be excluded. Others argue that none of the criteria can be eliminated but may be tailored for smaller projects. This paper proposes that rather than focusing on the development of an abridged or tailored set of criteria, new implementations of EVM for smaller projects should be constructed around key artifacts based on an assessment of the strengths and weaknesses of the organization's current project management methodologies.