The Case Study Of Franklin Electronics: Predicted Value Management

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Recommended: Advantages and Disadvantages of project scheduling

Regardless of industry, earned value management (EVM) has become the preferred method of metrics monitoring. Considering that EVM can be tailored to fit the needs of any project, and is easily done through electronic methods with technology today, it is the most user friendly tool for obtaining real-time status and progress reports for project managers and clients alike. This technique is recognized and put in motion at the initiation of a project, integrating costs, schedules, technical performance management, and risk management to more accurately relate cost to performance (Kerzner, 2013). “EVM is a method that uses scope, cost, and schedule to measure and communicate real physical process of a project” (Chen, 2014, p. 135). Moreover, the …show more content…

As this project was Franklin Electronics first attempt at utilizing EVM, it is plausible that the planning stage was not executed well, suggesting that the forecasted costs and schedules are not accurate. The simple fact that only four of forty-five work packages were being scheduled to be completed in the first four months, should have caused questions regarding the ability to complete more work as time continues, creating concern about the possibility of getting behind schedule. Schedule and cost variances were identified at the month two and month three reporting periods, increasing in value as the project moved forward. A schedule variance is calculated by subtracting planned value (PV) from earned value (EV), and a cost variance is determined by subtracting actual cost (AC) from the EV (Usmani, 2016). Given the equations for cost and schedule variances, one can identify those variances by a dollar amount, or a percentage. Using both equations, a negative result indicates either over budget or behind schedule (Usmani,

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