Forecast a project’s cost-effectiveness.
A project’s scope, schedule and cost are all three distinct variables. While each can be measured and controlled, it’s the interaction of the three that gives a project manager an accurate forecast of project performance to reflect positive/negative financial predictors of project success. This interaction is an approach called Earned Value (EV). Using formulas, EV shows how much time and budget should have been spent against the amount of work done at any phase of a project.
Earned Value Management (EVM) is an integrated measurement system that tracks project and budget cost adherence. In PRM 616 Earned Value Management for Project Managers, you’ll become familiar with the multiple schedule, budget and cost scenarios that can occur during a project,and the formulas used to determine if your organization is getting value out of the work done to date.
Sample Course Topics
Each week, you’ll focus on a new centralized topic as it relates to the overall objectives of this course. While weekly topics are subject to change based on course and instructor, sample topics may include but are not limited to the following.
- Overview of Earned Value Management
- Organizing the Work – Work Breakdown Structure
- Planning, Scheduling and Budgeting – Establish Control Accounts
- Cost Accounting – Establish Financial Tracking Methods
- Analysis and Reporting – Develop Critical Reports to Management
- Cost Accounting Monitoring and Control – Develop Control Methods
- Variance Management – Assessment of Variances to Plan and Reporting
- Budget Close-out
In learning these formulas, you’ll interpret Plan vs. Actuals and the two key variance calculations of Schedule Variance (SV) and Cost Variance (CV). You’ll see how an EVM system is developed through the creation of Work Breakdown Structure (WBS) and subsequent control accounts.
You’ll develop an understanding of the fundamentals required to establish an EVM system by creating a Work Breakdown Structure (WBS) and subsequent control accounts.
As people are almost always a part of any project management equation, you’ll evaluate the practice of individuals to the Responsibility Assignment Matrix (RAM) and control accounts to lay in activities into a time-phase model for execution. You’ll also understand how to allocate the budget to the Work Breakdown Structure (WBS) and determine the best methods for EVM.
By developing a Performance Measurement Baseline (PMB) as a foundation for measuring project performance, you’ll discover how project scope, schedule, and cost influence the decisions for appropriate tracking, monitoring, and controlling. You’ll identify the impact of cost and schedule to the PMB, using Planned Value (PV), Earned Value (EV), Actual Cost (AC), and Budget at Completion (BAC) to measure performance.
Changes will always occur during a project and you’ll determine how to assess changes in the project learn how to interpret variances to the Earned Value Management plan. You’ll also learn to interpret data gleaned from Earned Value Management and develop subsequent variance reports to management.
Your Learning Objectives
Through the use of case studies and scenario-based learning, you’ll gain a practical understanding of Earned Value Management in PRM 616.
- Assess projects utilizing Earned Value Management strategies to manage and report project status.
- Interpret and diagram Earned Value (EV) data to manage technical, cost, and schedule performance of projects.
- Evaluate the breakdown of the project work scope into finite pieces to be assigned to team members and assess accomplishments at the work performed level.
- Integrate the project work scope, schedule, and cost objectives into a performance measurement baseline plan.
- Explain significant variances between actual costs/earned value and planned costs and value to executive audiences.
- Demonstrate analysis of significant variances from the plan, forecast impacts, and prepare an estimate at completion based on performance to date and work to be performed.
Focusing on the close-out process, you’ll be able to finalize all Project Management Process Groups impacted by EVM, formally close out the project and shut down budget expenditures.
*Disclaimer: Course content and outcomes may vary and are subject to change without notice.