What is EVP?
Since 2005 the Association for Advancement of Cost Engineering (AACE) has given Earned Value Professional or EVP certification to the individuals with fundamental knowledge and expertise in project cost controls and earns value management.
According to AACE, as of January 2017, there are about 500 active EVPs.
Advanced Earn Value Analysis techniques, can develop independent Estimates at Complete (EAC) with a high degree of accuracy on large defense programs.
What is Earned Value Management (EVM) & Why is It Important to an Organization?
Earned Value Management or EVM is probably one of the most critical tools in project management and engineering construction.
Earned Value Management is a project performance management methodology that uses earned value. EVM refers to the discipline of applying Earned Value and Earned Value Analysis as an integral part of managing a project.
Every project needs a knowledgeable individual to address internal and external questions. For example, the stakeholders might ask if the project is on schedule, how much money has been spent on the project to date, or if the project will meet the budget plan!
The Earned Value Professional is the person who answers these types of questions. As an EVP specialist with EVM knowledge, you can measure the project’s performance and progress.
Earned Value Management does not fit all project types. It’s best to use EVM on process-driven development-type projects such as waterfall-type projects. For example, EVMS can be used in construction projects, engineering/manufacturing projects, some R&D projects, etc. Maintaining an excellent time-phased baseline for small, short-term tasks or projects with low cost/schedule risk may not be worth it.
EVM is not just about developing the Earned Value KPIs but also about integrating cost, schedule, and other related project management disciplines with risk management to actually manage a project.
What is the Earned Value Management System (EVMS)?
Earned Value Management System (EVMS) defines as the people, processes, and tools used to achieve EVM principles for an association.
While all these principles are compatible, there are differences in terminology due to different industries served. Also, it’s worth mentioning the level of prescriptiveness for each bar varies.
With the 32 guidelines of EIA-748, we can define the proper Earned Value Management System.
AACE International published a series of Recommended Practices to apply for Earned Value Management Systems. While EIA-748 describes the attributes that make up the EVMS, the AACE Recommended Practices provide detailed recommendations on the strategies to execute and operate the system. Examples include guidelines on Work Breakdown Structure (WBS) development, personnel required skills, and how to analyze a critical path properly.
It is certainly possible for an experienced project controls specialist to do everything necessary to operate an EVMS, especially when we are talking about smaller projects. Still, more extensive and complicated projects require multiple roles to manage using EVM effectively.
The Role of EVP Certificate Person in the Organization:
As an EVP, you will be capable of leading an organization’s EVM (Earned Value Management) workforce. They can design an ANSI 748 compliant EVMS, provide EVMS process engineering, advise corporate leadership on EVMS, and interpret EVM performance data. The EVP can fully participate in proposal, pricing, planning, scheduling, risk management, and other project activities and understands the domains of experts in these areas. The EVP is the EVM expert and advises the other domain experts regarding the ramifications of their decisions upon the EVM baseline and the utility of resulting performance data. The Earned Value Professional understands the project’s political environment and how to best communicate EVM performance data in each instance and audience. Finally, the Earned Value Professional can provide well-written, logical, and persuasive communication to the project team, corporate leadership, and the customer.
Why is Getting the Earned Value Professional Certification Valuable?
Certifications offered by the Association for Advancement of Cost Engineering (AACE) have been a mark of distinction for over thirty years. More and more employers demand these certifications as an employment requirement. These certifications provide exam and experience validation that helps employers, clients, and colleagues identify those who meet the program’s competency standards. Receiving AACE certifications ensures a high-quality standard. The EVP certification intends to recognize specialists who meet a demanding set of earned value management criteria through rigorous examination, experience, education, and ethical qualifications. The Competency Model used to develop the Earned Value Professional certification is based on the current version of American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748-current version).
EVP Exam Preparation Workshop Objectives
The focus of this workshop is to prepare attendees for the certification exam through reviewing subjects and sample questions. Also, individuals who want to obtain general knowledge about project cost control and Earned Value Management can significantly benefit from the workshop. Upon successful completion of this course, you will be able to:
- Recognize the Earned Value Management (EVM) System
- Identify personal knowledge gaps before taking the exam.
- Comprehend the concept behind the Earned Value formula, rather than relying on memorization
- Apply specific techniques for answering multiple-choice questions in the exam
- Prepare an earned value analysis report.
- Interpret and measure project health status based on the given accumulated value data
Who Should Attend the EVP Exam Preparation Workshop?
The EVP application requires at least four years of “cost engineering” experience, which may be in EVM (Earned Value Management), cost estimating, cost analysis, or related projects.
- Those who plan to write the exam and want to minimize study time and speed up the learning process
- Anyone interested in gaining a basic understanding of the Earned Value Management System (EVMS)
- Project managers, project controls personnel, engineering managers, construction managers, lead engineers, and similar roles
- Anyone who desires to excel in their career growth in project controls, cost engineering, and contract administration,
EVP Course Outline:
- EVM Basic Concept and Definitions
- Scope Definition and Organizational Requirements
- Planning, Scheduling, and Budgeting
- Accounting Considerations
- Earned Value Analysis and Draft Management Reports
- Revisions and Data Management
Eligibility Requirements of EVP Examination:
- Eight years industry related experience or four years industry related experience plus four year industry related college degree
- Adherence to AACE’s Canons of Ethics