Comments on: An Alternative to EVM: The Zone Method http://www.pmhut.com/an-alternative-to-evm-the-zone-method Sat, 11 Feb 2012 22:59:20 +0000 http://wordpress.org/?v=abc hourly 1 By: Michael Taylor http://www.pmhut.com/an-alternative-to-evm-the-zone-method/comment-page-1#comment-816 Michael Taylor Fri, 29 Aug 2008 16:39:51 +0000 http://www.pmhut.com/an-alternative-to-evm-the-zone-method#comment-816 Dr. Giammalvo: Your comments are well taken and correct if you assume that the Zone Method is a replacement for EVM. However, as stated in my article, that is not the point. I still believe EVM is the best tracking method available, but many of my students have cited conditions where EVM is an overkill, and the administrative load too great. For that reason the Zone Method is an alternative to EVM,not a replacement for EVM. mdt Dr. Giammalvo: Your comments are well taken and correct if you assume that the Zone Method is a replacement for EVM. However, as stated in my article, that is not the point. I still believe EVM is the best tracking method available, but many of my students have cited conditions where EVM is an overkill, and the administrative load too great. For that reason the Zone Method is an alternative to EVM,not a replacement for EVM. mdt

]]> By: Dr. Paul Giammalvo http://www.pmhut.com/an-alternative-to-evm-the-zone-method/comment-page-1#comment-815 Dr. Paul Giammalvo Fri, 29 Aug 2008 10:34:51 +0000 http://www.pmhut.com/an-alternative-to-evm-the-zone-method#comment-815 Hi Michael, Unless I have totally missed something, your article, while well written and certainly interesting, IMPO, misses entirely the point of Earned Value Management!! The fundamental principle behind EVM is WHAT DID WE GET FOR WHAT WE PAID. As I understand your approach, you are attempting to compare the planned vs the actuals only, correct? If yes, I fear this will give you only part of the picture, and IMPO, a dangerously false or misleading part of the picture, as it totally ignores what work was actually accomplished in that time period for the money spent. To help understand it better, is there ANY direct relationship between money spent and physical percent complete? In other words, if 50% of the money has been spent, does that mean 50% of the project is completed? Or is there any direct correlation between elapsed time and physical percent complete? Explained another way, if 30% of the allowed time has elapsed, does that necessarily mean the project is 30% complete? Assuming you agree the answer to both questions is no, then how can you assume that by comparing the cost variance (either in money or in hours) against the time variance, that it will tell you anything meaningful about the project, without knowing how much work was actually accomplished? Your graph, while a fundamentally sound concept, is, IMPO, using the wrong information. Instead of plotting the Cost Variance, (CV = EV - AC) try plotting the Cost Performance Index (CPI=EV/AC) and instead of plotting the Schedule Variance (SV = EV-PV), try plotting the Schedule Performance Index (SPI = EV/PV) Bottom line on all this- Earned Value, if implemented in a rational and simple manner, is no more onerous or bureaucratic that balancing your check book each month and I can promise you, it will tell you a whole lot more about your project than what I believe you are proposing? BR, Dr. PDG, Kuala Lumpur, Malaysia Hi Michael,
Unless I have totally missed something, your article, while well written and certainly interesting, IMPO, misses entirely the point of Earned Value Management!!

The fundamental principle behind EVM is WHAT DID WE GET FOR WHAT WE PAID. As I understand your approach, you are attempting to compare the planned vs the actuals only, correct? If yes, I fear this will give you only part of the picture, and IMPO, a dangerously false or misleading part of the picture, as it totally ignores what work was actually accomplished in that time period for the money spent.

To help understand it better, is there ANY direct relationship between money spent and physical percent complete? In other words, if 50% of the money has been spent, does that mean 50% of the project is completed? Or is there any direct correlation between elapsed time and physical percent complete? Explained another way, if 30% of the allowed time has elapsed, does that necessarily mean the project is 30% complete?

Assuming you agree the answer to both questions is no, then how can you assume that by comparing the cost variance (either in money or in hours) against the time variance, that it will tell you anything meaningful about the project, without knowing how much work was actually accomplished?

Your graph, while a fundamentally sound concept, is, IMPO, using the wrong information. Instead of plotting the Cost Variance, (CV = EV - AC) try plotting the Cost Performance Index (CPI=EV/AC) and instead of plotting the Schedule Variance (SV = EV-PV), try plotting the Schedule Performance Index (SPI = EV/PV)

Bottom line on all this- Earned Value, if implemented in a rational and simple manner, is no more onerous or bureaucratic that balancing your check book each month and I can promise you, it will tell you a whole lot more about your project than what I believe you are proposing?

BR,
Dr. PDG, Kuala Lumpur, Malaysia

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