Earned Value Management

Earned Value Management (EVM) is considered one of the most difficult topics in the PMBOK® Guide published by the Project Management Institute. Proper application of EVM to real-world projects seems to be even more challenging. This 2-day program offers an easy and effective way to learn how to apply the EVM method to real world projects. 

You will develop a performance measurement baseline (PMB) and will apply EVM to a project simulation. You will determine the project status, report the progress made, and forecast the future needs. Scope changes, unanticipated risks, and other common project “surprises” will be also addressed in this highly interactive, fast-moving program.There will even be a demonstration of how EVM can be applied using Microsoft Project.

Learning Objectives

• Recognize the power of EVM to track, control,and manage project costs.
• Create proper work breakdown structure (WBS) in order to effectively apply EVM method.
• Build a network diagram, allocate resources, and develop project schedule using Gantt chart.
• Estimate project costs in accordance with EVM principles.
• Develop a performance measurement baseline that integrates project scope, schedule, and cost.
• Apply EVM tools to real-world projects to control and manage cost and schedule.
• Calculate variances and performance indexes to determine the project status on budget and schedule.
• Forecast future budget and resource needs using EVM.
• Track and utilize contingencies as part of the EVM method.
• Demonstrate how to use Microsoft Project for applying EVM.
• Learn what is considered a dry subject in a hands-on, entertaining, and fun-filled environment.

Course Agenda

1. Introduction
   1. Why Earned Value Management?
   2. EVM History
   3. OMB EVM policy
   4. FAR requirements

    

2. Earned Value Management Method
   1. Objectives
   2. EVM method basics
   3. 10-Step EVM process

    

3. Project Baseline
   1. Work Breakdown Structure
   2. Network diagram
   3. Cost estimates
   4. Cost account plans
   5. LOE work packages
   6. Performance Measurement Baseline
   7. PMB revision

    

4. Earned Value Management Metrics
   1. How to measure earned value
   2. EVM performance indicators
   3. EVM performance indicators
   4. Tolerance limits
   5. CPI and SPI “Bull’s Eye” chart
   6. Likely causes of significant variance

    

5. EVM Forecast Indicators
   1. Various future scenarios
   2. EVM forecast indicators
   3. Variance at completion

    

6. Challenges With EVM Method
   1. Government experience
   2. Private sector practice
   3. What it takes to make It work