3.8.2 Integrating Systems Engineering and Earned Value Manag ement

Abstract

AbstractEarned value is the only technique proven to effectively integrate cost, schedule and technical performance management (Czelusniak 1997). However, because earned value is a derived measure, its effectiveness as a measure of performance depends on the effectiveness and objectivity of its base measures and on the capabilities of the systems engineering and project management processes that are employed. Earned value management (EVM) can provide more management value if it is integrated with systems engineering, if its implementation is consistent with pertinent standards and capability models and if the base measures for earned value are based on technical performance.This paper provides a framework and practical guidance for EVM process improvement. The framework is based on a gap analysis between the EVM standard and three standards and capability models for systems engineering and project management. The cited standards and models provide more explicit guidance towards achieving the principles of EVM than is provided by the EVM standard itself. Practical guidance for process improvement is based on best practices within Northrop Grumman Corporation and on the Software Engineering Institute (SEI) publication, “Using CMMI® to Improve EVM” (Solomon 2002).