Having implemented an Earned Value Management System (EVMS), you will now want to maximize the benefits it will provide. Apart from the obvious benefits of compliance with current and/or future contract reporting demands, how does all this help improve your business?
Since 1965, when earned value techniques were first formalized in the Cost/Schedule Control Systems Criteria (C/SCSC), both the government and the contract organizations have been able to benefit from standardized techniques in project control and reporting. When done correctly these provide stakeholders unprecedented insight into the current and future cost/schedule performance. Ten Six can help explain as well as put into context the following:
- Sources of Variances
- Performance Metrics
- Estimate at Complete Sources
- Statistical Estimate at Complete Tools
- Variance Analysis Thresholds
- Key Elements of the Variance Analysis Report and Their Checklists
- Cause
- Effect
- Impact
- Corrective Actions
- Examples of Good and Bad Variance Explanations
Of course, all of this depends on how well an organization’s people can interpret the information the system is providing. Ten Six will provide guidance and education, both with formal workshops and informal one-on-one training as the system is developed. We also offer training classes to help better understand EVMS Variance Analysis. Being able to read the Contract Performance Reports (CPR’s) for example, will enable you to learn a great deal about how a project is currently performing and how it is likely to perform in the future.