EVA Earned Value Analysis (EVA) Article Critique

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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.

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There is nothing groundbreaking in knowing that resistance to using the technique will reduce its effectiveness, or that managers with low levels of training in EVA will not implement it as effectively. Those are common-sense conclusions. What Lukas has done with his work is to dive right into the key elements of an EVMS so that the audience understands exactly what needs to be done, on a specific level.

In terms of the course content, Vargas' work might fit in early, where the ideas are covered in broad strokes without direct practical application. Given that he used a case study, this seems counterintuitive, but his findings are ultimately fairly generalized. Lukas is more advanced. He seeks to provide the tools needed in terms of theoretical concepts and formulae to successfully implement EVA. As such, his work might apply better towards the end of the course, where the nuts and bolts of using EVA are important. Both writers accept EVA as a control technique, and neither presents an argument against it. They simply focus on how best to implement EVA as a control technique, outlining ideas about the resources and techniques that are required to ensure that EVA is successful.

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