by A. Chandrasekaran, PMP, CEO, Infycareer Private Limited, Chennai, India

The Sanskrit word nirvana means "freedom of the personal soul from the pain of the physical world." As project managers, we are always striving, in a sense, to attain nirvana or at least a state of mind that is free from project worries.

Earned value management (EVM) can…

EVM can be used in a practical way to manage all modes of a project, whether it is a "firm fixed price" project that involves setting a fixed total price for a defined product or service to be provided, or through work orders in "time and material" mode which is a type of contractual arrangement that contains aspects of both cost-reimbursable and fixed-price contracts.

At the start of any project, the project manager needs to establish baselines clearly. The performance variations from the baselines are periodically assessed to initiate necessary corrective actions. EVM helps us integrate the scope, cost and schedule performance of a project.

EVM measurements determine projected performance and…

All project steps "earn value" as the project progresses. Earned value "EV (BCWS)" is calculated by PV (planned value) x PC (percentage of work completed), which can be compared to AC (actual costs) spent to determine projected performance, analyse past performance and predict future performance trends.

The variance of actual performance with planned schedule arises on account of two types of slippages.

Schedule slippage means that tasks are not completed as per planned schedule. This is measured by schedule variance (SV) as EV - PV, or schedule performance index (SPI), computed as EV/PV.

Cost slippage refers to the project being on schedule but is behind in terms of cost performance. This is measured by cost variance (CV), computed as EV - AC. In ratio terms of budgeted costs to actual costs for the work done, cost performance index (CPI) is calculated as EV/AC. Any value of SPI or CPI greater than 1 is favourable to the project.

…help to predict likely project trends

Let us assume that the current performance with respect to cost and schedule continues to prevail, future trends can be predicted by calculating CPI and SPI. If BAC (budgeted at completion) is the original budget of the project, BAC/CPI gives an estimate of the likely total spending on the project at completion, known as estimate at completion (EAC).

Adjustment for both schedule and cost parameters give a future cost prediction of EAC: EAC = AC + (BAC-EV) / CPI*SPI)

It is possible to compute these statistics for any interim project milestone. Significant variations between the planned and actual performances may call for revised baselines, which the project manager has to undertake, through established change control procedures.

Challenges in Computing EVM

Good PMIS (project management information systems) tools are needed to support EVM; the depth of support varies depending on the tools.

When baselines or project scopes get shifted frequently due to external constraints, effective use of EVM becomes a challenge. Measurement of EVM in intellectual work such as software development can be subjective when it comes to percentage of work completed in between milestones. An effective way to counter this is to have closely paced milestones and use a 20/80 loading rule for measuring the value of work in between milestones.

Project managers need to understand the significance of various EVM parameters for proper interpretation and action. EVM works well in a contractual context, but for internal projects, the costs may have to be substituted by efforts.

References

Fleming, Q.W., & Hoppelman, J.M. (1996) Earned value project management Newtown Square, PA: Project Management Institute

Prasad, V. (2006) Managing firmed fixed price projects using EVM: A case study Proceedings of PMI Global Congress 2006 - Latin America, Santiago, Chile

Putz, P., Maluf, D.A., Bell, D.G., Gurram, M.M., Hsu, J., Patel, H.M., & Swanson, K.J. (2006) Earned value management at NASA: An integrated, lightweight solution. Washington, DC: National Aeronautics and Space Administration (NASA)

QAI. (n.d.) Earned value: A primer deployment of earned value management systems in project environment. Retrieved from http:www.qaiglobal.com/downloads/Earned_Valuea_primer1.pdf

A. Chandrasekaran, B.Sc, PGDBA, LLB, CSM, PMP is the present Chief Executive Officer of Infycareer and a trustee of the ICBMS TRUST. He has over 30 years experience in business, education, IT and project management. Mr Chandrasekaran has worked with many reputed national organisations and has served in organisations across Gulf, Asia, U.K., Europe, U.S.A and Africa. He has also led more than 20 organisations towards ISO Certification and a few towards CMMI.

His forethought, expertise and persuasive skills have led Infycareer to academic partnerships with Arizona State University, U.S.A. and Software Engineering Institute of Carnegie Mellon University, Pittsburg, U.S.A as education partners.

Mr. Chandrasekaran presented "Attaining Nirvana Through EVM: The Eternal Mantra for Managing Projects Effectively" at PMI® Global Congress 2010—Asia Pacific.

PMI^® Launches Career Central on PMI.org as a Resource for Practitioners to Advance their Careers

PMI just launched Career Central on PMI.org—located at PMI.org/CareerCentral—designed to provide project management practitioners with a comprehensive resource for career information. Now there is no need to search all over the web or PMI.org to find tools and information to assist your career "project." Fresh and original content on Career Central that is updated weekly will guide you through your job and career moves.

Feature articles are designed to help you think through career transitions. Examples of such features include information on industries you may not realize hire project managers, tips for obtaining employment in the government sector, and advice for people who are new to project management.

Much of this original content is focused on industry, specialization, particular career stages and trends according to regions. In addition to links, the hub includes text articles, and will have interactive features, illustrated slideshows and podcasts.

Valuable Take-Aways for Immediate Action

Among the types of information you will find are:

• Career advice and interviews with experts in career management;
• News and analysis to help guide your career decisions;
• Counselling features to help you negotiate a raise, improve your networking skills and position yourself as an expert; and
• Information to help you stand out to current and potential employers.

Links take you to a variety of PMI programmes and services designed to aid your career, including:

• Certifications and credentials matched to practitioner career levels;
• Academic programme information to help you consider opportunities to advance your education in project management;
• Career Headquarters jobs and résumé service; and
• Professional development opportunities such as SeminarsWorld^®, eSeminarsWorld^SM and PMI global congresses.

Whether you are seeking employment advice or looking for knowledge on how to move your career to the next level, Career Central makes it easy for you to access information. The hub centralises career-related content, credential and professional development information, and other resources from PMI.

Please visit PMI.org/CareerCentral often to find the information and resources you need for your career in the project management profession-and to contribute to the dialog. Along with the new hub, PMI has launched the PMI Career Central LinkedIn group-the first official PMI group on this popular professional networking site.

This article was first published in the 26 February issue of PMI Community Post.

Knowing your earning potential is an invaluable asset when you want to leverage opportunities at your current job, invest in skills to raise your marketability, and plan the next phase of your career. It's also critical for organisations, which are competing for top talent as the demand for project managers grows. Discover your earning potential with PMI's latest project management salary survey.

Created and conducted by PMI's market research team, the PMI^® Project Management Salary Survey—Sixth Edition provides a comprehensive look at compensation in the global project management field, measuring salaries across eight major position description levels in 19 countries. The Sixth Edition, conducted in 2009, reflects a greatly increased sample size for more accurate results, based on self-reported data from nearly 35,000 project management practitioners around the world.

Represented countries include Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, New Zealand, Saudi Arabia, Singapore, South Korea, Taiwan, United Arab Emirates, United Kingdom and United States.

Learn more about the PMI Project Management Salary Survey—Sixth Edition and purchase it from the PMI Marketplace. Log in as a member to use the salary survey query.

If you wish to start, build or advance a career in project management with the right knowledge and professional skills, attend the PMI^® Global Congress 2010—EMEA on 10–12 May 2010 in Milan, Italy.

The EMEA congress includes numerous sessions on topics such as project management trends, the use of new media and social networking tools, using methodologies like agile to complement general project management practices, and skills needed to manage risk in the new economy.

Also, as a PMI credential holders you can earn up to 35 PDUs through Congress and SeminarsWorld^® attendance.

You can still register now!

Registration, pricing and lodging information for the EMEA congress is now available online.

You are one click away from getting the education and professional contacts that you need to further in your professional development.

Your company has several employees working with projects?

Get together a group of your colleagues and save 10-20 percent with our group discount programme. All you have to do is to send the first page of the PDF registration form that is available online by email or fax to +32 2 743 1550 (one registration form per colleague).

PMI^® Japan Chapter is holding their annual Summer Festa at the Advanced Institute of Industrial Technology, Tokyo, Japan on 12–13 June.

Themed Smart Project Management, the programme offers two days of seminars and workshops including tracks on project management theory, project management practice, and business strategy.

The chapter has invited Nobuko Kurosaki, vice-president, Médecins Sans Frontières, Japan Chapter as the opening keynote speaker.

To register for the Summer Festa, visit the website.

PMI has announced that President Bill Clinton will deliver the keynote address at PMI^® Global Congress 2010—North America in Washington, D.C., 10 October 2010.

In his speech, "Embracing Our Common Humanity," President Clinton will draw upon his experiences to provide insight into the challenge of globalisation, emphasising our growing interdependence and pointing the way toward a future based on shared goals and values.

This year's Congress will take place at the Gaylord National Resort & Convention Center from 9–12 October.

If you are interested in attending, there are at least two good reasons to register early:

• All who register on or before 27 May will be entered into a drawing to win a preferred seat for the keynote address, delivered by President Bill Clinton. 20 winners in all will be awarded preferred seating!
• Save with early registration rates.

Visit the Congress website for details and registration information. Additional information on educational sessions, networking events, speakers and more will be added as it becomes available.

The PMI^® Mumbai Chapter held their 9^th Annual General Meeting (AGM) and 87th PMP Club Meeting, on 9th January, 2010, at the Emerald Club, Royal Palms, Mumbai.

During the AGM, Tejas Sura, President, PMI Mumbai Chapter gave an overview of the growth of the chapter, and the receipt of the Component of the Year Award, Category II in 2009.

Hari Kumar, managing director, Deloitte India, was present with his keynote address Educated Clients and Having the Right Team. Mr. Kumar and his wife, Priya Kumar, unveiled the annual edition of Prakalp, a project management journal published by the chapter.

This was followed by a presentation by Satish Diwanji, project manager, Bandra Worli Sea-Link, know officially as the Rajiv Ghandi Sea Link. Mr. Diwanji spoke about the magnitude of this massive project, built to overcome the severe traffic congestion between Mahim and Worli.

The sea link accommodates 140,000 vehicles on a 4.7 kilometre eight-lane twin carriageway, reducing travelling time from 45 minutes to seven.

Materials consumed included 2,250,000 metric tonnes of concrete and 40,000 metric tonnes of steel and the project team faced challenges in the areas of engineering and technology. Being the first sea-link built in the country, the team had to use unfamiliar new technology. High precision and accuracy had to be met despite adverse weather conditions over the sea.

The chapter is looking forward to a good year, maximising value to members, collaborating with other chapters, and establishing corporate partnerships.

Gautam Gangoli, PMP
Member - Communications Committee
PMI Mumbai Chapter

The submission deadline is fast approaching for the James R. Snyder International Student Paper of the Year (ISPY) Award, which is given to college and university students around the world. The PMI^® Educational Foundation (PMIEF), a non-profit charitable organization, will give one regional ISPY Award to an individual in the Asia-Pacific region.

TThe deadline for applications is 17 May 2010. Students may only apply for the ISPY Award for their region.

The ISPY Award recognises graduate and undergraduate students for research and creative effort directed toward advancing the concepts, tools and techniques of managing project-oriented tasks.

The winning regional author will receive a US$500.00 cash award and an expense paid trip* to PMI^® Global Congress 2011—Asia Pacific (dates and location to be announced), where he/she will have the opportunity to present their paper.

Please review ISPY Award information and contact pmief@pmi.org with any questions..

Information on this and PMIEF awards is available in the Scholarships/Awards section of PMIEF.org. Please review each award and scholarship description for applicable residency and other requirements (if any).

* PMIEF will pay reasonable travel expenses including congress registration, transportation, lodging and meals for the award recipient. The award recipient is responsible for having travel and lodging pre-approved by PMIEF.

The PMI^® Educational Foundation (PMIEF) funds grant requests for programmes that align with its' vision and mission:

• Helping students obtain their dream through education
• Helping children prepare for success in life
• A better prepared response in times of need

We have recently funded five grants.

The Impact grant funded project management training for high school girls in Ghana.

The Make It Happen grant is funding workforce development in Maine. They are providing project management training for people who are out of work, and part of that training prepares then to take the CAPM^® examination.

The West Chester University grant is funding the development of a project management class that is contextualized for primary and secondary teachers. This also includes a teacher focus group that will evaluate and refine the course content.

The Millersville University grant is funding the development of a project management class for non-profit organisations.

The South Medford High School grant is funding the development of an integrated project management curriculum to be delivered via a project learning methodology. The class will include four subjects, English, history, geometry and biology. The students will be presented with the problem that a pandemic has hit the city and they need to develop a project plan to mitigate the danger.

All of the materials that will be developed through these grants will be available on the PMIEF Web site and can be downloaded at no charge.

If you are interested in applying for a grant, access the application and information here.

If you have any questions or would like additional information please contact Diane Fromm at diane.fromm@pmief.org.

There are 45, 419 members in the PMI Asia Pacific region as of March, representing over 14 percent of total PMI membership.

Registered Education Providers (R.E.P.s) are organisations approved by PMI to offer project management training for professional development units (PDUs) to maintain your PMI credentials.

There are currently 262 R.E.P. organisations enrolled in the PMI R.E.P. Programme in the Asia Pacific region.

View the R.E.P. Web pages on PMI.org to learn more about R.E.P.s or log in to the new CCR System to find a provider of project management education and activities in your country.

Welcome New R.E.P.s in Asia Pacific

Australia – Dimension Data Learning Solutions

China – Nanjing GuangAn Science and Technology Co., Ltd

India – SKIL

Singapore – iKompass

Singapore – NTUC LearningHub Pte. Ltd

Taiwan – Fast Track Project Management Services

If you are organising a PMI event in the Asia Pacific
region and would like us to list it in the e-Link, please
contact SoHyun Kang, Asia Pacific component relations coordinator.

10–12 May
PMI^® Global Congress 2010—EMEA

12–13 June
PMI^® Japan Chapter-Summer Festa

9–12 October
PMI^® Global Congress 2010—North America

PMI credentials involve a rigorous process designed to ensure the highest possible professional standard. All candidates for Project Management Professional (PMP)^®, Certified Associate in Project Management (CAPM)^®, Program Management Professional (PgMP)^®, PMI Scheduling Professional(PMI-SP)^® and PMI Risk Management Professional (PMI-RMP)^® must first meet specific education and experience requirements and then pass an examination.

73 Bukit Timah Road, #04-01, Rex House, Singapore 229832

Tel: +65 6496 5501
Fax: +65 6336 6449
E-mail: customercare.asiapac@pmi.org

The Asia Pacific Service Centre is open Monday through Friday, 9:00 a.m. – 6:00 p.m., Singapore time (GMT +8).

28 May 2010 — Vesak Day