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An Integrated Exercise To Teach Earned Value Management
Earned Value Management (EVM) provide the basis to assess work progress against a baseline plan, relates technical, time and cost performance, and provides managers with a summary of effective decision making. It is a useful technique for measuring project performance and progress in an objective manner. The advantage of EVM is that it combines measurements of scope, schedule, and cost in a single integrated system to provide accurate forecasts of project performance problems. This paper discusses the development and implementation of an integrated example problem that can be used to teach students 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 to include requirements, schedule, budget, assumptions, constraints, and objectives and therefore reinforces many of the key project management concepts students study in our courses. The goal of implementing the integrated example is 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. The example is designed to emphasize the integration of required data, developing key performance indicators (KPIs) and metrics, and automated EV reporting. A secondary goal of this paper is to explore how EVM serves as a tool for communicating project status to stakeholders.