These findings are consistent with what one might expect from a case study analysis, which typically produces anecdotal evidence that can be scanned for generalized knowledge about the issue. In that respect, Vargas succeeds with his study.
A contrasting study comes from Lukas (2008) who argues why EVA does not work. He argues that EVA is not likely to succeed as a standalone technique. Instead, he notes, it needs to be used in conjunction with earned value management (EVM), which relies on a developed earned value management system (EVMS). Lukas' article is instructional in nature; it does not purport to be a research study. Instead, the author works from the premise that his ideas are correct and moves directly into what steps the organization needs to take in order to have a fully-functioning EVMS. Having the right measures in place, having means of making those measurements and having a team that can execute EVM effectively are all important.
Lukas does not build on Vargas' work so much as redoes it. Lukas does not begin with the idea of testing any hypothesis concerning the value of EVA; instead he takes that premise as a given and moves straight into the implementation. This is a strength of his work. Vargas eventually gets to the implementation, using his case study findings, but his findings are superficial in comparison to those of Lukas. There is nothing groundbreaking in knowing that resistance to using the technique will reduce...
Validating the Concept of Earned Value Management It is important to note, from the onset, that most companies have in the past made extensive use of planned costs and actual costs in seeking to track project costs. In this case, if all the funds assigned to a specific project are used up, then the target is seen as having been hit. However, a cost under-run is perceived is less funds are
lowest level possible, as Ruskin (2004) advocates, because it prevents individuals from attempting to "game the system," to "look good," or to falsify their actual progress, which is more like to happen in 50-50 approach, where the individual or team is credited simply for beginning. With the 0-100 approach, there is no credit received until completion and passing the EVM assessment (Earned Value Analysis, 2012). Even with quarterly approaches,
Value-Based Management (VBM) is a management philosophy that aims to achieve superior results (Niedell, 1996). This process measures performance by the value that is returned to shareholders. Successful implementation of VBM requires a successful change in corporate culture, as well as the adoption of VBM concepts at all levels and functions within an organization. VBM includes an integration of performance measurement, compensation, strategic planning, training, and communication (Porter, 1986). The
Instead, it aligns the interests of managers with those of shareholders" (Shieley 14). An editorial discussing the value of quality in a corporation's product, states that in the U.S., "quality' is too often a mantra without meaning - an empty promise... that bears no relation to the physical reality of the goods produced." The article goes on to suggest that there are inherent values in quality that can be factored
Economic Value Added Statements Improve Financial Reporting There are many potential advantages of using Economic Value Add analysis to improve financial reporting, results and increase the probability of success for specify investment initiatives and programs. There are also limitations or problems with this technique as well, which are briefly described in this analysis. Analysis of Earned Value Added (EVA) In defining EVA, the equation used for calculating it is based on the
Baseline Without a project baseline, or a projected idea of the project's original "original scope, cost and schedule" it is impossible to assess whether a project is going well or poorly (Ortiz 2008). The baseline must be accurate to be useful and defined before the project is undertaken. Periodically, over the course of the project, the baseline can be referred to, to see if the project is going over budget
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