IntroductionSpokane Industries has an 18-month product development contract with Franklin Electronics. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Although Franklin and Spokane have worked together in the past, they have primarily used fixed-price contracts with little to no stipulations. For this project, Spokane Industries requires Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and reporting and meeting schedules. Because Franklin Electronics had no experience with earned value management, the cost accounting group was trained on the methodology for bidding the project. Franklin Electronics won the contract because it had the lowest price. They developed a work breakdown structure that consisted of 45 work packages with 4 delivered in the first 4 months. They also developed a simple status report consisting of work packages due, budgeted cost for scheduled work, budgeted cost for work performed, actual cost for work performed, cost variance, and price variance. When the first status report is delivered, the project manager of Franklin Electronics is called into an emergency meeting because the vice president of Spokane Industries is unhappy with the progress. In this paper we will discuss improving the Six Sigma process to track time and costs, recommendations on how Franklin Electronics can use project management principles to achieve the goal of improving efficiency and enabling management to make better decisions, and informed through the use of Earned Value Management. , how an effective earned value management system contributes…… half of the document……f The Quality Assurance Institute, 12.Kerzner, H. (2013). Franklin Electronics. In H. Kerzner, Project Management: A Systems Approach to Planning, Scheduling, and Control (pp. 839-841). Hoboken, NJ: Wiley.Kerzner, H. (2013). Project Management: a systemic approach to planning, scheduling and control. Hoboken, NJ: Wiley.Kim, B. &. (2011). Combining project cost forecasts in earned value management. Journal of Construction Engineering and Management, 958-966.Sitnikov, C. (2012). Six Sigma as a strategic tool for companies. Young Economists Journal / Revista Tinerilor Economisti, 94-102.Townsend, LA (2014). A planned performance approach to effort-level activities. Journal of Engineering Management, 21-30.Webb, C. (2014). Labor cost vs. Material cost. Retrieved from Chron.com: http://smallbusiness.chron.com/labor-cost-vs-material-cost-11368.html