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Date: 2024-06-22 Page is: DBtxt003.php L0300-Management
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EVM ... Earned Value Management
EVM-Basic Concepts-Humphreys-Consultancy-2012
Earned Value Management has been used since the 1960s in the very large procurement programs of the US military. This 7 page summary shows that the ideas of the EVM system are quite solid and not overly sophisticated.
TPB Note: I am reminded of a management system I worked on with H.A.Simons (International) ... consulting engineers to the pulp and paper industry ... in the mid 60s that was somewhat similar, pulling together the cost estimates derived from engineering design, through the process of procurement and then construction. A project cost budget was monitored by comparing an 'allocated budget' to the cost estimates, then the purchase orders, then invoices. With this basic level of control cost overruns were identified in a granular way right from the start of the project through to the final completion.
I recall doing an audit / analysis of the labor expenditure on one small element of the total project early on in the construction, and identifying a 100% cost overrun relative to the budget cost estimate. My boss, the project manager for our consulting firm reviewed my work carefully before calling in the construction firm's (Brown and Root) construction manager to get an explanation. This meeting took place Friday when the contractor's personnel count was 1,400. On Monday the same work was being done by 700.
' Concepts-Humphreys-Consultancy-2012.pdf' Open PDF ... EVM-Basic Concepts-Humphreys-Consultancy-2012
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