Business Skills - Earned Value Management
This course teaches you the fundamentals of EVM so you can understand how to establish an effective project baseline and monitor project progress against known expectations.
Learn how EVM is integrated throughout the project life cycle. Practice the activities you go through to establish an effective baseline. Identify the critical data points that must be collected to analyze project progress. Learn to conduct trend analysis, calculate actual cost, and accurately project final cost, schedule, and performance variances. Understand how change impacts EVM and how approved changes can impact your original baseline. Identify the stakeholders who would benefit from EVM data and learn effective communication methods. Finally, review the differences of EVM in a corporate and federal environment.
Duration: 40-45hrs
Course Content:
1. Introduction to Earned Value Management
The need for EVM
Project dilemma
The role of EVM: Monitoring projects
Project controls
Management by milestones
Characteristics of EVM
Milestones
Milestones as measures
EVM project planning
EVM terminology
EVM statistics
EVM data
Basic EVM terminology illustrated
Performance statistics
Forecasting
Management by exception
The value of earned value
2. History of EVM
A hundred years of evolution
Cost control for government
Limited adoption in private sector
A simpler version: EVMS
Back to basic earned value principles
3. Ingredients necessary for EVM
EVM planning overview
Management questions answered by EVM
EVM stages
Precision and rigor
Three-dimensional view of a project
4. Defining scope
Defining the work to be done
What's in and what's out
Work breakdown structure
Decomposition to work packages
Decomposition to task and activity
WBS terminology
WBS principles
5. Scheduling the project
Scope and then schedule
EVM scheduling requirements
Master schedule
Vertical integration
Horizontal integration
Example schedule
6. Integrating scope, schedule, and costs through CAPs
Control account plans
The role of CAPs
CAP ingredients
CAP size and number
The CAP rule
CAP example
What is left to complete a project plan?
7. Establishing an EV measurement baseline
EV measurement baseline
Questions answered by the baseline
Planning and measuring earned value
Establishing an EV measurement system
Considerations for choosing a measurement method
Methods used to plan and measure EV
Example CAP with EV measures
Project cost baseline
PMB components
Managing change
8. Monitoring performance against baseline
Monitoring starts at the task level
Trend indicator
Management by exception
Cost performance index
Using the CPI
Schedule performance index
Using the SPI
Cumulative vs. periodic data
9. Forecasting final cost and schedule results
Management with the headlights on
Factors determining project results
Statistical forecasts
Estimate at complete
To complete performance index
Schedule forecasting - EAC
10. EVM criteria review
EVM overview
Implementing EVM