How do you define and measure work package performance using EVM?

Work packages are the smallest units of work in a project that can be measured and controlled using earned value management (EVM). EVM is a method that helps project managers track the progress, performance, and costs of their projects. In this article, you will learn some best practices and tips for defining and measuring work package performance using EVM.

1 Define work packages clearly

To use EVM effectively, the first step is to define your work packages clearly. These are tasks or activities that produce a specific deliverable or output and should be manageable, measurable, and meaningful. To do this, break down your project scope into smaller and simpler components. Each work package should have a unique identifier and descriptive name, as well as defined scope, duration, resources, and quality requirements. Make sure to align your work packages with your project schedule and budget.

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2 Establish a baseline for each work package

The second step to use EVM effectively is to establish a baseline for each work package. A baseline serves as a reference point to compare the actual performance of a work package with the planned performance. To set a baseline, you must estimate the effort, time, and cost required to complete each work package and calculate the planned value (PV) of each work package. Furthermore, you should record the baseline data in a work breakdown structure (WBS) or a project management software.

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Barry Long

Corporate VP of Program Cost and Control - Cubic Corporation
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Our experience … consistency of WBS down to meaningful level across projects allows for better performance measures of process and EV …. Thinking Thru quantification of scope in work package allows for velocity and performance relationships …. Ev is key to project execution but it’s structure allows for continuous measure / improvement and data transparency forward looking in ETC or new project efforts

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3 Monitor and control the performance of each work package

The third step to use EVM effectively is to monitor and control the performance of each work package. This involves collecting and analyzing data on the actual scope, schedule, and cost of each work package, in order to identify and address any variances or issues that may affect your project outcomes. To do this, you should measure the actual progress and completion of each work package, calculate the earned value (EV) of each work package, compare the EV with the PV and the actual cost (AC) of each work package, calculate the schedule variance (SV), cost variance (CV), schedule performance index (SPI), and cost performance index (CPI) of each work package, and report and communicate the performance results. If needed, take corrective actions.

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Barry Long

Corporate VP of Program Cost and Control - Cubic Corporation
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Shorter duration work packaged of measurable scope or completion status allows for best EV vs judgements like percent complete.

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Dan Lynch

Senior EVMS/IPM Consultant
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I find it interesting that terms we’ve used for 40 years have been replaced. BCWS is now PV BCWP is now EV ACWP is now AC No issue on this but I wonder how many System Descriptions will now be updated? ($$$$$)

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4 Review and update the performance of each work package

The fourth step to use EVM effectively is to review and update the performance of each work package. This involves evaluating and adjusting the baseline, assumptions, and forecasts of each work package to ensure that your project is on track and aligned with your stakeholders' expectations. To do this, you should conduct regular reviews and audits of each work package, validate the quality and accuracy of the performance data, identify any changes or risks that may affect the scope, schedule, or cost of each work package, update the baseline, estimates, and forecasts as needed, and document and communicate the changes and their impacts.

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Barry Long

Corporate VP of Program Cost and Control - Cubic Corporation
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Our experience is not to adjust baselines … they are measuring stick of commitments to org and customers. But transparency of measure to baseline allows finding early adjustments necessary, corrective actions to be taken or clarity of changes.

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5 Use EVM tools and techniques

The fifth step to effectively use EVM is to utilize EVM tools and techniques. These methods and applications help in collecting, analyzing, and presenting the performance data of each work package. EVM tools and techniques can simplify and automate the EVM process, while also enhancing decision-making. Examples of such tools include EVM formulas and equations for calculating performance indicators and ratios, EVM charts and graphs for visualizing trends and variances, as well as EVM software and systems for storing, managing, and reporting performance data.

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6 Learn from EVM best practices and lessons learned

The sixth step to use EVM effectively is to learn from EVM best practices and lessons learned. These are the proven and valuable knowledge and experience that project managers have gained from using EVM, which can help improve skills and avoid common pitfalls. For example, you should define and communicate your EVM approach and criteria clearly, involve your team and stakeholders in the process, use realistic data for calculations and forecasts, track changes and risks that may affect results, and use EVM as a tool to support project management.

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Barry Long

Corporate VP of Program Cost and Control - Cubic Corporation
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Repeatable structure and looking at not only current performance measures … but their trend over time in a project or portfolio of projects best prepared org for status but more importantly action (s) that may be necessary

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Earned Value Management

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How do you define and measure work package performance using EVM?

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1 Define work packages clearly

2 Establish a baseline for each work package

3 Monitor and control the performance of each work package

4 Review and update the performance of each work package

5 Use EVM tools and techniques

6 Learn from EVM best practices and lessons learned

Earned Value Management

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