Project Scope Of Earned Value Management - 925 Words

Earned Value Management started back in the early sixties when the Air force started using the program. In recent years, the program has become a part of the federal project risk management system and is mandatory tool used for US government contracts. Earned Value Management helps to analyze many parts of a project such as the cost variance, schedule variance, cost performance, and schedule performance. Earned Value management measures the performance of a project by finding variances between the works being completed. This paper will discuss how project scope relates to Earned Value Management. Scope of the Project Project scope is the most important part of the planning process of any project. Early in the planning process, one has to†¦show more content†¦Earned Value management Analysis The Work Breakdown Structure The work break down structure of the project shows a breakdown of the project in parts. This facilitates efficient planning and execution of a project as well as exercise project cost control (Gray Larson, 2008 p314). With the work break down structure, the project can avoid delays, technical issues and defect in production. WSB allows managers to divide the work and responsibilities among each employee, and allocate the budget and finances for the project. Foundation for Earned Value Management The foundation for every organization establishes a process for project management has an opportunity to add value to the organization and project. Building a Earned Value Management foundation for an organization will help align the process for maximum value creation. The foundation for EVM starts at the core of the company. Financial data, program management should be considered part of the foundation building for EVM and Program Management. Planning the Project The first step in planning process is the development of the work breakdown structure, organization breakdown structure, and the combination of the two to create the responsibility assignment matrix (Meredith Mantel, 2008 p235). Project planning involves the creation of the project management plan as well as Earned value