What is the Earned Value Management course about?
Earned Value Management (EVM) or Earned Value Analysis (EVA) is a method of performance measurement which integrates scope, cost (or resource) and schedule measures to accurately assess project performance. The purpose of this analysis is to compare the amount of money actually spent with that which has been earned by performing the work to date.
Earned Value techniques provide a discipline that ensures sound management and, what is more important; provides an early indicator of the state of the health of the project from, primarily, a cost and schedule perspective.
Who is it for?
This course is ideal for two types of project person; the one that has to report progress and the one that has to read a progress report. This dual element is key – if either party do not understand the methodology used for reporting progress the actual report becomes redundant. Likewise, if an ineffectual methodology is used, then incorrect information may be given and potentially damaging decisions made based upon an incomplete picture.
What are the benefits?
Plotting and reporting Budgeted Spend versus Actual Spend only does not give a representative picture of the full situation. It is only when Earned Value is added that we can see where the project is against time, resource and money. Using the first type (Budget v Actual) it may appear that a project is over budget, but when Earned Value is added it may well be clear that the project is indeed ahead of budget in terms of work completed to date and earned value v budget.
Progress reports that include this vital element show an accurate picture. Stage gate decisions, strategy decisions, resource decisions and smoothing options all become realistic and valuable tools that become more viable with the information from Earned Value Analysis.
Based upon the Earned Value Analysis, future trends can be tested for reasonableness.