Earned value management is a substantial tool for tracking budgetary status and forecasting budget status as your project continues. This video provides an overview of earned value budget tracking and forecasting, including the data you will require, the formulas you should use, and how to share the resulting information in your project status reports.
- Most everyone loves tracking things.…We follow our journey on our GPS,…we watch our driver make their way to us…on the latest ride sharing applications,…and bus and train stops have posted times…for the next arrival,…so we can track when we can continue our journey.…Tracking information makes us feel more in control.…Earned value budget tracking,…also called earned value analysis,…allows us to understand how much a project has earned…based on the tasks you have finished.…
So we and our managers have a sense of control…around the financial status of our project.…Let's say 50% of your project's duration has passed…and 50% of the budget has been spent.…Sounds like things are as you'd planned, right?…However, if only 30% of the work is done you're in trouble.…You have to finish 70% of the work,…but with only half the time and money left to do it.…That's a very uncomfortable situation.…
Earned value analysis looks at the project…from cost, schedule, and work completed metrics…and can determine progress and spending variances…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.