From the course: Exam Tips: PMI Agile Certified Practitioner (PMI-ACP)®

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Earned value management and key performance indicators

Earned value management and key performance indicators

From the course: Exam Tips: PMI Agile Certified Practitioner (PMI-ACP)®

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Earned value management and key performance indicators

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- Executives always watch projects as they progress to make sure they're getting the value they hoped for. That's where Earned Value Management, EVM, comes in. While ROI, return on investment, NPV, net present value, and IRR, internal rate of return are tools you can use to select the right project to execute, EVM has its own set of tools and graphs, that you use to create visual indicators of how things are going. Two common tools are costing graphs and schedule charts. On the cost measurement side, an S curve graph that tracks estimated project costs to actual costs over time is the most common. On the schedule side the Gantt chart is most commonly used to track the status of the project schedule. Many people believe you can't use EVM on an Agile project. In reality, you can. The calculations work the same. But you need to be careful about what you're measuring. EVM measures actual progress against planned progress and relies on having a quality baseline plan from the beginning…

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