Comparing and Contrasting: Project Scope and EVM - Report Example

The fundamental purpose of project management is to complete a project in time and under budget. From the start to close out of a project, it usually takes about 12 to 30 months for the completion (exceptional projects are there). For achieving cost and following the carved out schedule, the project manager as well as the project team members need concrete strategic tools to make sure that the project goals are achieved satisfactorily. Project scope is only half the force that makes a satisfactory completion of a project possible.

  The other half of the driving force that gets the project completed according to expected quality levels is the Earned Value Management (EVM). That is how project scope and EVM mutually support each other.Areas Where Scope and Earned Value Will Diverge Scope and EVM don’t diverge. A project can be accomplished using only project scope methods. But when EVM is incorporated into the project management system along with the scope, it adds many useful tools to strengthen the strategies.

These strategies help in improving the quality as well as the efficiency of a project. As explained above, project scope and EVM mutually enhance each other and are equally important for the project manager. Work Breakdown Structure to Scope the Project Project scope uses the basic tools of time and cost control. The work is broken down and the restructured form of the project scope is separated into various parts. Cost and time are the main two categories for dividing the project. The project management itself is more focused on the ‘what’s’ of a project; defining the task and breaking the work into a different structure theoretically.

On the other hand, the scope is more concerned with the ‘how’s’ of a project. It breaks down the work into its specific functional parts. Work Breakdown Structure in Earned Value Management A work breakdown structure forces the project to focus on the necessary work components. Work Breakdown Structure (WBS) also ensures that critical work areas are also defined that constitute various phases of the whole project. For earned value management, work is broken down according to three variables which also form the base of all calculations.

These variables are; Planned Value (PV), Earned Value (EV), and the Actual Cost (AC). When the work is broken down one thing is necessary, to convert all values of these three variables into one unit (mostly the ‘$’ dollar value). This breakdown of work might look odd because the work variables can be the length of the pipe or labor hours but for the calculation of EVM, all variables need to be converted into their dollar value. Here is an example of the work breakdown in the EVM.

A project task has a planned value of $2500 and its actual cost also matches its PV ($2500). The work is broken down in such a way that the plan time budget graph seems exactly according to the schedule. But when it is broken down against the EVM graph, inefficiency can be spotted as too much time (resource) is being consumed for relatively less predictability. Planning the Project Project scope or project scope management requires complex planning. Financial forecasting as well as contingency planning is involved to develop a concrete and pragmatic plan.

However, EVM has introduced the concept of CTR. CTR stands for Cost-Time-Risk and it is usually presented in the form of a diagram (Chen, 2008). The purpose of a CTR diagram is to provide a graphical analysis of the project similar to a project health monitoring map. Throughout the project lifecycle, this CTR diagram unveils all hidden costs and values that tie up or choke down potential profit holes. This diagram also assists the project manager in evaluating the risky and healthy/cost schedule boundaries.

Planning the project by using both EVM and project scope gives the best results. Scheduling an Earned Value Project An earned value project is scheduled by determining all variables before the start of the project.   Modern EVM projects use very effective tools that help them to determine the fault as soon as possible. The earlier the mistake is spotted the better it is for the completion of the project. Boundaries are scheduled at each stage of the lifecycle of the project. There is a safety zone determined for all the variables of a project.

For instance, a budget safety zone is created while scheduling an EVM project. When the cost remains within that safety zone, the project is said to have remained under budget.   Earned Value Baseline The earned value baseline is fundamentally related to Statement of Work (SOW) (An Oracle White Paper, 2009). The purpose is to combine various aspects of scope with EVM to build robust management strategies. The EVM baseline is used for forecasting the project as well as developing solid controls over variables in the future.

An EVM baseline is created by merging the scope and schedule. It is used to compare the performance of various aspects of the project at various stages of the work. That is why it is extremely important that SOW is clearly mentioned. When there is ambiguity in SOW then it can possibly lead the project towards divergence (An Oracle White Paper, 2009). In order to save the project from the derailment, a clear and concise SOW is used to establish the baseline of the EVM. This baseline cost is also used to determine the cost schedule itself.

In short, an EVM baseline is the fundamental tool that forms the basis of the EVM control. This control requires continuous monitoring throughout the lifecycle of the project.