Project monitoring

I am responding to Ms. Nila Ardhianie's article titled "WB project monitoring needs revision" published on April 8.

I am responding in an official capacity as regional director of advocacy for the U.S. based Project Management Institute (PMI). PMI is a nonprofit global organization representing the profession of project managers. A chapter of PMI was established in Jakarta in 1996.

Responding to Ms. Ardhianie's call for a review, we agree and respond with the following:

There is a method of monitoring projects that was developed by the U.S. government in the early 1960s to track and monitor the performance of large, government-funded projects such as those funded by NASA, the Department of Defense, and the Department of Energy. This is known as Cost/Schedule Control Systems Criteria, which is more popularly known as Earned Value Management. What this proven system does is to provide a transparent and structured approach to evaluate rather simply and effectively, "What did I get for my project expenditures?"

While originally developed by the U.S. government over 30 years ago for large projects, it remains in effect today as part of the U.S. government Federal Acquisition Rules and is now being used on all government funded projects. It was the Earned Value Management system that enabled the U.S. government to uncover fraudulent practices by contractors, such as charging US$300 for a toilet seat, or $200 for a screwdriver. This system has not only stood the test of time (30 years plus) but has also been adopted by Britain, Sweden and most recently, the Australian government.

The concept of Earned Value Management is not foreign to Indonesia. It is taught at all major Indonesian universities, including the Bandung Institute of Technology, Tarumanagara, Gadjah Mada University and the University of Indonesia. Furthermore, there is a sizable group of both Indonesian and expatriate professional practitioners who have earned the globally recognized and respected "Project Management Professional" (PMP) certification. By earning the coveted PMP designation, these individuals have demonstrated both a knowledge of capability to effectively manage projects, of which the use of Earned Value is considered an essential competency.

PAUL D. GIAMMALVO, CDT, PMP, CCE

Region 10 Director of Advocacy

Project Management Institute

Jakarta