MMSPM008: Earned Value Management (EVM)

Earned Value Management (EVM) is a project planning and control approach which provides cost and schedule performance measurements. It compares actual accomplishment of scheduled work and associated cost against an integrated schedule and budget plan. Its benefits include visibility into the true progress of the project work against the budget, projections of anticipated project schedule and cost trends and the ability to take timely corrective actions for undesired variances. EVM is considered to be one of the most powerful and productive concepts utilized in managing today’s complex projects in private, commercial or government environments.

Outline:

• Key concepts and principles
  • Earned Value Concept in a Nutshell
  • Create project performance measurement- planned value
  • Actual cost spent for physical work
  • Comparison of traditional project cost and funding management
• Planning Process
  • Define project scope
  • Assign responsibility
  • Identify the interfaces between tasks
  • Identify the key project milestones
  • Prepare the master schedule
  • Prepare top budget
  • Prepare detail budget and schedule

• Definitions and Formulas –Status and Analysis
  • Cost Variance
  • Schedule Variance
  • BCWS- budgeted cost of work scheduled
  • BCWP-Budgeted cost of work performed
  • ACWP-actual cost of work performed

• Implementation

• Weighted Milestones
• Percent Complete Estimate
• Combination of percent Complete Estimates with Milestone Gates
• Equivalent Completed Units
• Earned Standards
• Apportioned Relationships to Discrete Work Packages
• Level of Effort
• Fixed Formula by Task

This course is highly interactive and adaptive to class interests and needs. A lecture/discussion approach is used and is accompanied by individual and team exercises.