My project is out of budget. In the budget review 2012 we were kindly asked to implement earned value process to watch our progress. I rejected this request last 3 years because we are in the engineering project, where too many changes happen (requirements, materials, durations, authorities requests), but now the budget is spent, nerves are on edge – the micromanagement phase starts.

So how to calculate earned value in an engineering project? Well, lets start with deliverables. We have about 30 hardware parts to be delivered to the customer for the brand new aircraft. Every of this equipment is different in complexity, some are simple, some have very new product development parts, never seen before. For this reason, the testing and documenting is partially more important and more difficult as usual. We had a lot trouble with some of the parts already in the engineering testing, no one knows, how many Murphys will visit us in the next weeks and months. So, most of the time we do much more than planned and still behind schedule. How to calculate this?

Currently we agreed on using agile thinking and the burn up chart. Every change – every unpredictable change – will be added on top to the scope. If the management wants earned value management, they will get the whole truth. I will report about the progress here.

If you read this and have similar experience or helpful ideas, I would be glad to learn from you!