Measuring Project Performance
By James Thomson, Lloyd Carter and David Read

1st published in The Global Standard, May 2003 edition.
(Re-printed with the permission of Standards Australia)

A New Australian Standard for Project Performance Measurement Using Earned Value has potential application world wide.

Earned Value is a primary project management tool that provides very accurate project performance data in terms of current status as well as forecasts of future performance by integrating the scope, schedule, and cost parameters of a project.

According to Standards Australia's Director of Business Standards, Mr. Mark Bezzina: "The acknowledge benefits of an Earned Value Management System [EVMS] is that it provides objective measurement of project performance in both cost and time from both the past and future perspective.  The approach provides common metrics that allow for a comparison of pr0ject performance amongst and between various organisations and projects.  The metrics and associated graphic depictions are consistent and easy to understand at all management levels."

EVMS has been used around the world at least since the late 1960's.  Perhaps the most prevalent use of the technique in the early days was an oversight system by acquisition agencies purchasing large systems to monitor the project performance of seller organisations.  In recent years there has been an explosive growth in the use of the technique far beyond the traditional acquisition agencies.  It is being employed by a large range of organisations in various industries for application on both large and small projects or endeavours for both internal and external applications.

Committee OB-014 responsible for the new Standard included EVMS experts and practitioners who were representatives of the following organisations:

  • Department of Defence

  • Project Management Institute

  • Australian Performance Management Association

  • Australian Bankers Association

  • Australian Health Industry Inc

The new Standard is simple enough to be interpreted by the uninitiated yet subtle enough to incorporate the essential features of an EVMS.  The new Standard has the following features:

  • It defines the essential attributes of an Earned Value technique and system.

  • While it is not intended to provide specific implementation guidance, it does provide enough information concerning implementation to allow the user to gain the benefits of the method.

  • It may be used as a barometer to determine whether an Earned Value methodology has been implemented.

  • It is suitable for all industries and sizes of projects

  • It clearly delineates the benefits of an EVMS.

  • It is fundamentally compatible with any existing Australian or International Standards, guidelines, directives or bodies of knowledge.

  • It is relevant to project managers and executive management in organisations that emply project management approaches.

Copies of AS4817-2003 Project Performance Measurement Using Earned Value can be purchased through the Standards Website.

Mr. James Thomson is a Project Manager in Standards Australia's Management and Business Division.  Mr. Lloyd Carters is a member of Committee OB-014 and a consultant with extensive experience in the design and implementation of Earned Value Performance Management Systems.  Mr. David Read is a member of Committee OB-014 and has been closely associated with the development of Earned Value Performance Management in Australia since 1988.

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