Important Factors for Organizational Performance Evaluation through Implementation of Earned Value Management (EVM) in North Taiwan

In order to cope with the rapid changes in the world, enterprises utilize project management methodology to globally outsource their works and to evaluate their internal and external work performance. Of all the project management techniques, Earned Value Management (EVM) is the major one that provides a method to evaluate project performance by integrating schedule and cost of work packages. EVM establishes a performance measurement baseline (PMB) for a project. PMB displays the schedule for expenditure of the resources assigned to accomplish work packages and represents time-phased accumulation of the cost spent to the work subordinate elements. The performance of project evaluates by comparing with planed baseline. The variances between them are reported by Project Management Information System (PMIS). EVM also is capable to forecast project risk through regression analysis of the accumulated cost data on the time frame. Nowadays, EVM has been effectively implemented in the large-scale project management for the project’s budget above two billion dollars among U.S.A., U.K., Canada, Sweden, Australia, and Japan, etc[4]. It has been recognized as a valuable tool for project management as well as a standard for measuring contract performance [5][6][7]. Recently, earned value management systems maturity model and the earned value management maturity model were developed. These efforts offer the specific goals for an organization to implement EVM for control and performance evaluation of a project step by step [8][9][10][11].