Earned Value Management A disciplined structured objectve and quanttatve method

Earned value management a disciplined structured

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Earned Value Management - A disciplined, structured, objectve and quanttatve method to integrate technical work scope, cost and schedule objectves into a single cohesive contract baseline plan - Allows a project team to understand the projects progress in terms of cost and schedule Planned Value – The approved value of the work to be completed in a given tme Earned Value – The value of the work actually completed to date Actual Cost – The total costs incurred in accomplishing work on the actvity during a given period Budget at Completon – The total amount budgeted for the entre project Schedule Variance – Denotes schedule performance (SV=EV-PV) Cost Variance – Refects cost performance (CV = EV-AC) Schedule Performance Index – Schedule performance measure (SPI% = EV/PV) Cost Performance Index – Cost performance measure (CPI% = EV/AC) Estmate to Complete – Expected budget required to complete all remaining work Method 1 - ETC = (BAC – EV)/CPI Method 2 – ETC = BAC – EV Estmate at Completon – Total cost of completng all the project work (EAC = AC + ETC) To-Complete Performance Index – Measure of the cost performance required to complete the project TCPI% = (BAC-EV)/(BAC-AC) Downloaded by Shaun Mlangeni ([email protected]) lOMoARcPSD|3347332
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What Makes a Schedule Useful To be useful 3 sets of schedule data must exist for comparison purposes - The baseline set - This set is the original stake-holder approved scheduled values - Data includes the baseline start, baseline fnish, baseline duraton - The actual set - This set is what actually happens during project executon as reported by the resources assigned to the project tasks - Data includes the actual start, actual fnish, actual duraton - The scheduled set - This set is the future estmated tme and costs and is calculated by MS Project - Data includes start, fnish, duraton Defne the Performance Update Process - Simply the project manager updatng actual project data as the project is executed - The following guidelines will help the project manager keep the schedule updated and accurate - Who reports – All team members and suppliers assigned to tasks that were scheduled during the last reportng period need to report - What is reported – Actual start, actual fnish, actual duraton complete and estmated remaining duraton are reported - When to report – The project manager decides what day of the week resources will report performance as well as the frequency Steps to Update the Project Schedule 1. Acquire performance data 2. Set the status date 3. Display the status date line on the Gant chart 4. Enter the duraton-based performance data 5. Reschedule remaining work 6. Revise future estmates Replanning if Necessary - Sometmes it becomes necessary to replan a project - The project manager can use the integrated change control system to understand the impact the proposed changes may have - The changes are then refected in a revised plan - Changes a project manager may need to recommend include - Reassigning actvites to diferent workers
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