This document discusses the use of Earned Value Management (EVM) for troubled projects. EVM is a project management technique for measuring project performance and progress. It can help identify problems early when used for troubled projects, allowing corrective actions to be taken sooner and potentially saving time and money. While the theoretical knowledge of EVM is widespread in Turkey, its practical use in industry is still limited due to cultural preferences against planning for risks. The document argues that EVM systems provide valuable insights into a project's performance and can help better control projects if used properly.

2. Is it worth of
using EVM for
troubled projects?
NEJAT MURAT ERKAN, MBA, PMP, ITIL
14 Nisan 2016
İstanbul

3. Nejat Murat Erkan, MBA, PMP, EVM, ITIL, CPCC, ACC
Mr. Erkan started out his career as a business consultant in USA. In the following years, he continued his career in
pharmaceutical industry. Initially, he worked as a Project Leader in Health Marketing at GlaxoSmithKline and later on, he
worked as a Project Manager in the field of allergy and immunology at Greer Laboratories in North Carolina. After
spending 7 years in USA, he moved back to Turkey in 2000. After his return, he continued his career in the
telecommunication industry at Vodafone Turkey. In 2005, he started to work at the leading GSM operator Turkcell, as
Program Manager and he managed multinational/multi-million dollar Telco/IT projects. In April 2011, he started to work
as ICT Key Account Manager for Turkcell Group Companies Best in Belarus and Astelit in Ukraine. Since August 2014, he is
working as Turkcell Technology Sales & Marketing Manager.
Mr. Erkan holds a Bachelor of Science degree (BSChE) from Yildiz Technical University, Istanbul and a Master of
Business Administration (MBA) degree from Campbell University, USA. He is a member of Project Management Institute
and currently he is serving as the VP of Marketing & PR & Sponsorship and Outreach of PMI Turkey Chapter and he is the
College of Performance Management-Global Advisory Committee representative and first PMI EVM Certified person in
Turkey.
He gained his PMP certification in September 2005. He is the past president of IPYD (Istanbul Project Management
Association). He also lectures project management courses at Istanbul Technical University. In August 2014, he gained his
CPCC «Certified Professional Co-Active Coach» certificate and coaches young professionals.
Mr. Erkan was born in 1970 in Istanbul. He speaks fluent Turkish, English, French and speaks basic Spanish and basic
Russian. He believes in “life time learning”.
Earned Value Management

4. GOAL
What is EVM and how it is associated with risks?
What is the value of EVM for troubled projects?
Is it really worth of using it?
Earned Value Management

5. AGENDA
EVM Basics?
EVM Practices in Turkey and US?
EVM Tools?
Cultural Impacts and Legislations?
How Can We Benefit From EVM?
Earned Value Management

6. PROJECT
1. EVM Basics?
2. EVM Practices in Turkey and US?
3. EVM Tools?
4. Cultural Impacts and Legislations?
5. How Can We Benefit From EVM?
Earned Value Management

7. PROJECT EQUILIBRIUM
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8. PROJECT SUPERHERO
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9. PROJECT BASIC PROCESSES
Earned Value Management

10. PROJECT BASIC PROCESSES
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11. PROJECT KNOWLEDGE AREAS
Earned Value Management

12. RISK
Earned Value Management
…likely impact or amount
at stake should it occur.
it has a likelihood / probability
of occurring, and a…
RISK
EVENT

13. RISK PLANNING
Earned Value Management
Early risk
management
and mitigation
builds better
valued projects

14. RISK RESPONSE PLANNING
Avoid
Mitigate
Transfer
Earned Value Management
Avoid
Mitigate
Transfer
Accept (Workaround)

15. FOR A GOOD START
Earned Value Management
Kervan Yolda Düzülür…..!

16. BASELINING
Earned Value Management
To measure,
you need a
referance point!

17. GENERAL EVM TERMS
Earned Value Management
PV: Planned Value
EV: Earned Value
AC: Actual Cost
BAC: Budget At Completion
EAC: Estimated Actual Cost
ETC: Estmated Termination Budget
VAC: Variance Actual Cost
CV: Cost Variance
SV: Schedule Variance
CPI: Cost Performance Index
SPI: Schedule Performance Index
CV=EV-AC
SV=EV-PV
CPI=EV/AC
SPI=EV/PV
EAC=BAC/CPI
ETC=EAC-AC
VAC=BAC-EAC

18. GENERAL EVM TERMS
Earned Value Management

19. GENERAL EVM TERMS
Earned Value Management
PV= 800 USD
EV= 600 USD
AC= 900 USD
CV=EV-AC=600-900 = -300
SV=EV-PV=600-800 = -100
CPI=EV/AC=600/900 = 0,67
SPI=EV/PV=600/800 = 0,75

20. PROJECT STATUS ANALYSIS
Earned Value Management

21. EVM is USA
Earned Value Management

22. EVM in Turkey
 Theoretical knowledge is widely spread in:
- Universities offering certificates in PM
- PM training and consulting companies
- And of course PMPs in Turkey
 But when it comes to industry practices, it
is not commonly used due to…
Earned Value Management

23. IMPLEMENTATION of EVM
In Turkey:
Turkish DoD (Subcontracting companies),
Construction, Telcommunication and Banking
In other Parts of the World:
Aerospace, DoD, Construction, Shipbuilding, IT,
Telecommunication, Pharmaceutical, Railroad
Infrastructure, Maintenance, Safety, Social
Security, Euro 2004, Expo 98, Paper mill etc…
Earned Value Management

24. EVM APPLICATIONS & TOOLS
In Turkey:
- MS Project
- MS Excel
- In-house developed softwares
- SAP Project System
In other Parts of the World:
- Cobra & OpenPlan & Winsight
- Welcomhome
- Planview
- Primavera
- Systalex etc…
Earned Value Management

25. CULTURAL EFFECTS on EVM and RISK
 Turkish people will love to take risks with minimal
calculations
 We believe, we are protected by God and we
believe bad things won’t happen
 We are not willing to pay/reserve money for risk
allocated issues
 As a project manager, we need to be more
convincing on EVM and Risk Plan implementation
Earned Value Management

26. LEGISLATIONS and SANCTIONS in TURKEY
 Turkish Way:
-As a first step, second step and third step PMs try to solve
the conflicts with subcontractors internally
-As a last step PMs try to solve conflicts by taking to the
courts, or make them pay penalties
 Courts Lateness:
-Taking to the court takes too long, not efficient laws
 Few Contractors:
-Very few contractors/subcontractors are in the market place
Earned Value Management

27. EVM SYSTEMS
Earned Value Management

28. HOW CAN WE BENEFIT FROM EVMS?
Earned Value Management
EVMS is the dashboard of your project...!

29. HOW CAN WE BENEFIT FROM EVMS?
 To be aware of the pitfalls of the project early in the life
cycle, so we can take the corrective actions sooner.
Resulting time and money saving
 To measure project and teams performance, so we can
change the pace of the project to meet the objectives
 To be able to predict the future of the project in
advance, so we can have better control over the
project
Earned Value Management

30. LAST WORDS
If you don’t measure it precisely,
you can’t manage it properly…!!!
Earned Value Management

31. GOAL
What is EVM and how it is associated with risks?
What is the value of EVM for troubled projects?
Is it really worth of using it?
Earned Value Management

32. Q & A
Earned Value Management
N. Murat Erkan
nejatmurat.erkan@turkcell.com.tr
+90 532 210 2437
Thank You….