Purchase Solution

Project Management and Earned Value Management

Not what you're looking for?

Ask Custom Question

I have to analyze how the scope of an assigned project relates to Earned Value Management (EVM).
I have to elaborate on how a project manager integrates both of the concepts for effective project progression?
I must also indicate the following::
- Use of a work breakdown structure to scope the project
- The work breakdown structure as the foundation for EVM
- Planning the project
- Scheduling an earned value project
- The earned value baseline.

Purchase this Solution
Solution Summary

This report attempts to detail the relationship of project management and earned value management through the understanding of the potential final influence on a firm's performance and its resultant implications

Solution Preview

In order to answer all of the questions above and to understand the relationship between project management and earned value management, we need to create the foundation from which these two concepts emanate. To do so and to understand the basis for these two concepts, we need to discuss the principles and concepts related to finance. Finance principles include (among others), the following:

* maximize shareholder wealth
* manage the time value of money
* understand the risk/reward concept and how it affects future based decision making
* leverage the use of assets to grow a business
* diversify in order to help reduce risk
* create cash flow which is KING for any business
* competitive markets relate to the fact that all business firms are constantly looking for investment opportunities to leverage and grow their business model
* efficient capital markets relates to the idea that the markets price a firm correctly and that market changes can happen quickly
* taxes will affect all business decisions
* ethical behavior relates to the notion that we should always do the right thing --- even when no one is watching.

Now what does this have to do with project management and earned value management? ALL businesses want to grow in order to provide increasing returns to their investors (maximize individual wealth), and all businesses require a new or re-arranged set of assets in order to provide this return (risk/reward concept). Growing firms require new assets in order to generate growth, and this requirement usually exceeds the ability of the firm to fund these assets. Hence the need for involvement in the capital market --- the constant need for funding in order to acquire new assets to continue the growth process. Capital can be raised in three different ways:

* through the issuance of debt (bonds)
* through the issuance of equity offerings (stock)
* through the issuance of a hybrid security known as preferred stock which has the combined properties of debt and equity.

The capital market is the place to gain access to these funds --- and all of these sources of funds have costs associated with them --- it requires the firm to either pay back the funds (debt + interest), or provide the necessary return to investors in ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Earned Value Management Discussion

    404801 Earned value management (EVM): Historical survey and use in project management Write a white paper on earned value management (EVM). Also, provide a concise historical survey of the evolution and use of EVM in project management.

  • Earned Value Management

    The earned value management give project management with impartial, precise and timely information for effective decision making. The article claims that earned value is "what did I receive for what I spent?"

  • Earned Value Analysis - Monitoring and Controlling Project Cost

    This solution contains an analysis of monitoring and controlling a project cost, together with earned value management and straight financial accounting.

  • Earned Value Management and Managing Project Costs

    515586 Earned Value Management and Managing Project Costs What is Earned Value Management (EVM)? How can EVM be used to effectively manage project costs? I need at least 250 words and a reference to start.

  • baselines and earned value analysis

    Project Management: How do baselines and earned value analysis help with projection completion

  • Advantages and Disadvantages of Earned Value Management

    565397 Advantages and Disadvantages of Earned Value Management It has been said that Earned Value Management (EVM) came about because the federal government often used "cost-plus" contractors with project organization.

  • Project Management Maturity Model

    The earned value method is an objective method of evaluating project performance. The earned value method combines scope, schedule, and cost of the project.

  • Schedule and cost control techniques

    Three of these tools include the project evaluation and review technique or PERT, risk matrices and earned value management.

  • Earned Value in Projects

    This solution discusses earned value management and outlines its main criticism in a project setting. A real-life example is included to illustrate a situation where earned value may play an important role.

  • Cost Scheduling in a County Funded Hospital

    What is earned value management? ? The earned value management is used in project management measure the progress of the project.

View More Related Solutions