Earned Value Management (EVM) offers a powerful way to gain insight into the performance of your project. When properly set up, EVM can yield much more than just a single S-curve. It offers dynamic, in-depth insights that help to monitor and adjust the performance of various project aspects such as disciplines, contractors and phases. At BAEKEN, we go beyond the standard approach. We always link EVM to probabilistic analyses to provide a more realistic picture of project performance. Here, we explain what EVM can do for you and what you need to successfully implement it.

What does EVM do?

1. In-depth insight into value production on multiple levels EVM not only gives you a general picture of your project’s progress, but also allows you – if properly set up – to break down performance by discipline, contractor or project phase. This makes it possible to manage more effectively where necessary. It enables project managers to identify problem areas in a timely manner and take action before they have a greater impact on the overall project.
2. Proactive control of costs and time EVM makes it possible to identify deviations in costs and time at an early stage. By continuously monitoring with indicators such as the cost performance index (CPI) and the schedule performance index (SPI), project managers can intervene before a small deviation leads to major delays or cost overruns. This helps to maintain control over the project, even when it has to deal with unforeseen circumstances.
3. Better risk management and process improvement EVM often exposes inefficiencies and weaknesses in planning and execution. When project performance lags, EVM provides insight into which processes or data flows need improvement. This not only makes it possible to better manage the current project, but also provides valuable lessons for future projects.
4. Probabilistic analyses for realistic planning At BAEKEN, we go beyond the standard EVM approach. Instead of basing EVM solely on deterministic planning, we link it to probabilistic analyses such as Monte Carlo simulations. This means the EVM curve is not only based on a relatively unachievable plan, but on realistic, probabilistic values such as the common P85. This provides a much more accurate picture of the progress of the project and offers reliable information to steer by.

Conclusion

Earned Value Management offers much more than just a snapshot of your project. It gives you in-depth insights that enable you to steer dynamically, manage risks and monitor value production at specific levels. At BAEKEN, we go even further by linking EVM to probabilistic analyses, which gives a more realistic picture of project performance and enables better-informed decisions. By setting up EVM properly, you can not only improve the performance of your project, but also draw valuable lessons for your entire organization.