Join Aileen Ellis for an in-depth discussion in this video Why would someone use earned value?, part of Project Management: Calculating Earned Value.
Earned Value Management is…a project management methodology.…It integrates scope, time and cost…to accurately measure current project performance…and realistically predict future performance.…Without Earned Value Management it is…almost impossible to truly understand…the status of a project.…Let's take a typical example.…The blue line represents the budget…for the project based on how much work…should be complete over time.…
We call this our Planned Value.…The green line represents how much we have spent…to date on the project for the work that is complete.…We call this our Actual Cost.…I was consulting for a very successful Silicon Valley firm…when the group's finance manager…presented this slide.…Every person in the room cheered…since the project was running under budget.…I asked, "How are we doing from a work complete standpoint?"…Really I was asking if we were running under budget…because we were managing our money well…or if we were running under budget…because we had less work complete than we should.…
The room went silent.…
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- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.