Earned value management system

The technical execution of the project is straightforward once the baseline activities are properly identified, scheduled, resource loaded, and leveled. If planning the work is completed in detail, the only thing left is to work the plan and report on the progress in a consistent manner. Normal reporting utilizes an earned value management system identified under the project management section. 

Gray, J., Harvey, T. (1992). Quality value banking Effective management systems that increase earnings, lower costs, and provide competitive customer service. New York Wiley. 

Eastman Chemical has set up a powerful two-part incentive system for all its employees, not only manufacturing personnel. On the one hand, the top 600 managers have to put between 10 and 40 percent of their salary at risk. However, they can earn a bonus of up to 80 percent of their base salary depending on the economic value created, the increase in sales volume, and the improvement in labor productivity. Furthermore, they are required to own Eastman stock worth between 50 and 400 percent of their annual income. 

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