3. Identifying patterns and trends…
….is something humans are quite good at.
And patterns and trends in the past can be good predictors of the
future.
Earned Value Management
3
4. Earned Value Management (EVM) attempts to answer to the
following questions:
...are we ahead or behind schedule?
...how efficiently are we using our time?
...when is the project likely to be completed?
...are we currently over or under our budget?
...how efficiently are we using our resources?
...what is the remaining work likely to cost?
...what is the entire project likely to cost?
...how much will we be under or over budget at the end?
Earned Value Management
4
5. Patterns and trends will help to identify:
● Where problems are occurring
● Whether problems are critical or not
● What will it take to get the project back on track
Earned Value Management
5
… or go back to the usual
divination techniques.
10. Planned Value describes how far along project work is supposed
to be at any given point in the project schedule.
Constitutes the Performance Measurement Baseline
Earned Value Management
10
Budget at
Completion
Planned Value
12. Earned Value is a snapshot of the work progress at a given point
of time. Reflects the amount of work that has actually been
accomplished to date, expressed as the planned value for that
work.
Earned Value Management
12
Planned Value
Earned Value
14. Actual Cost is an indication of the level of resources that have
been expended to achieve the actual work performed to date.
Earned Value Management
14
Planned Value
Earned Value
Actual Cost
16. Work performance is measured periodically, such as weekly or
monthly.
Discrete efforts that span one to two periods are often measured
with fixed formula techniques (0-100, 50-50,..)
Discrete efforts of longer duration (greater than two periods) are
measured with other techniques, including those known as
weighted milestone and percent complete.
Earned Value Management
16
17. Mapping the % complete to project stages allows to implement
fixed formula or percent complete.
Earned Value Management
17
21. Schedule Variance determines whether the Project is ahead or
behind schedule.
Earned Value Management
21
Schedule
Variance
Time
now
Time behind
SV = EV - PV
34. ● Decompose the work to a manageable level
● Assign unambiguous management responsibility
● Develop time-phased budget for each work task
● Select the appropriate Earned Value Measurement
Technique
● Maintain Integrity of Performance Measurement Baseline
Earned Value Management
34
36. ● Record resource usage during project execution
● Objectively Measure the Physical Work Progress
● Credit Earned Value according to Earned Value
Techniques
● Analyze and Forecast cost/schedule performance
● Report performance problems and/or take action
Earned Value Management
36
37. Find the module: project_earned_value_task in: https://github.com/Eficent/project-
earned-value
Thanks to
37
Jordi Ballester Alomar
Email: jordi.ballester@eficent.com
Twitter: @jbeficent_erp
Website: www.eficent.com