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Value
Measureme
nt
Earned Value Measurement (EVM)
Definition
Technique...integrates project
Scope, Cost and Schedule measures
to help the project management team
assess project performance.
PMBOK Guide, 2008
EVM History
EVM Measures:
1. Planned effort (Planned Value PV) Baseline
Person-days estimated at current date
Cumulative cash flow of project
2. Actual effort (Actual Cost AC)
Person-days expended at current date
If measuring cost, use committed cost
3. Scope achievement (Earned Value EV)
Percent of work (scope/deliverables) accomplished
EVM Analyzes:
Current status vs baseline (variance)
Estimate to complete (Effort & Duration)
(Baseline estimate x index actual effort)
Corrective actions (if needed)
Earned Value Illustrated (S-Curve)
Cost
Estimate to Complete
(ETC = BAC EV)
Estimate At Completion
Budget At Completion (BAC) (EAC = AC + ETC)
Microsoft Excel
Worksheet
Interpretation and Analysis
PV: Budgeted Cost
AC: Actual Cost CV SV PROJECT STATUS
EV: Earned Value
Over-achieving, but overspent for
the achievement
1 (-) (+)
Cost
Consolidation issues:
Cultural Issues