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Earned Value Management

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elvis-yates
18 diapositives · 305 Views · Nov 20, 2014

This guide provides an overview of Earned Value Management (EVM), a crucial project management tool for measuring performance, integration of scope, schedule, and resources. Learn how to implement EVM through performance measurement baselines, understand key terms such as Budgeted Cost of Work Scheduled (BCWS), Actual Cost of Work Performed (ACWP), and Budgeted Cost of Work Performed (BCWP). Discover how to manage variances, employ reporting tools, and forecast resource needs while effectively communicating project status. Perfect for project managers seeking structured decision-making and comprehensive reporting.

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Earned Value Management
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  1. Earned Value Management How do we get started?

  2. What is it? • A planning process • An internal policy • A contract requirement • A way to measure performance • A way to identify problems • A forecasting tool • A way of doing business

  3. What is it? A way to integrate scope, schedule, and resources all at once!

  4. How is it used? • A reporting tool • Satisfy the contract reporting requirements • “filling the square” • As a decision-making tool • To evaluate project planning • To communicate status • To forecast resource needs

  5. Language of EVM • Budgeted Cost of Work Scheduled (BCWS) • The plan to spend budget • Actual Cost of Work Performed (ACWP) • The costs of the work that has occurred • Budgeted Cost of Work Performed (BCWP) • What was performed (what it should have cost) • This is EARNED VALUE

  6. Language of EVM • Schedule Variance SV = BCWP – BCWS • On/Off plan in dollars (>0 is ahead, 0 is on target, <0 is behind) • Schedule Performance Index SPI = BCWP/BCWS • On/off plan as a ratio (>1 is ahead, 1 is on target, <1 is behind) • Cost Variance CV = BCWP – ACWP • Over/under running (>0 is underrun, 0 is on target, <0 is overrun) • Cost Performance Index CPI = BCWP/ACWP • Return on actual costs (>1 is under, 1 is on target, <1 is over)

  7. Language of EVM • Budget Authority for unknowns • Management Reserve • Budget at Complete, BAC • The budget to do the work • Estimate to Complete, ETC • Estimate of the cost to do the remaining work • Estimate at Complete • Best guess of cost of entire cost of project • Latest Revised Estimate • Contractor’s best guess of cost of entire cost of project

  8. In a Picture EAC Management Reserve BAC PMB Schedule Variance Cost Variance $ ACWP BCWS BCWP time Time Now Completion Date

  9. How do we do this? • Performance Measurement Baseline • Scope • Identify the scope of work • WBS • Extend to Work package level

  10. How do we do this? • Performance Measurement Baseline • Schedule • Arrange work packages in order • Schedule start and finish • Classify work and choose EV technique

  11. How do we do this? • Performance Measurement Baseline • Budget • Identify needed resources (budget) • Spread budget • Calculate Cumulative BCWS

  12. How do we do this? • Performance measurement baseline Graph Cumulative BCWS

  13. Example Task Cost Start End WP1 9 1 3 WP2 12 3 7 WP3 28 3 4 WP5 8 6 9 WP5 10 1 10

  14. 1 2 3 4 5 6 7 8 9 10 WP1 WP2 WP3 WP4 Monthly BCWS Cumulative BCWS WP5 Example

  15. Next time • New cost spreading techniques • 0/100% • 50/50% • % complete • Balanced Level of Effort • Directed Milestone

  16. Organizational Chart Vickery’s Egg Delivery Company President & CEO Vickery VP Engineering VP Construction Senior VP Operations VP Design VP Finance VP Espionage VP Materials

  17. Organizational Chart • Organizational chart glossary • What kind of organization do you have? • What is your decision-making paradigm? • How do you resolve conflict? • Who has what responsibilities? • What do they do? • Who do they report to? • What do they cost? • How will you track it?

  18. Organizational Chart Rest of Class is part one of your project • Organizational Chart • Corporation Name • Team Members • Positions • Responsibilities • Charge Track