Practical Earned Value Project Management
(2 Days)

Course Description:
Earned Value Management (EVM) is considered to be one of the highest forms of science within project management. Based on empirical evidence, the employment of EVM has proven to predict schedule and cost run rates with a high degree of accuracy and certainty. The knowledge and use of this tool is essential if a project manager is planning to work on any large government, architectural or engineering project.

Historical project tracking methods monitor what has happened in the past, a process equivalent to driving a car while looking backwards. Effective project managers use the past to predict the future and propose “gap-closing” solutions before a project loses momentum. This workshop describes the EVM concepts, terminology, calculations, and graphical processes that can be used effectively to manage larger business projects. Participants will learn the problems of typical financial reporting as a measure of project performance and how basic Earned Value formulas can answer many business questions regarding current project status and forecasted future performance. PMI’s five accepted techniques for calculating earned value will be reviewed, as will some emerging practices in the earned value arena such as time-based schedule measures. Course terminology is consistent with PMI’s Practice Standard for Earned Value Management.

Intended Audience:
Project Management Professionals (PMPs), experienced project managers, program managers, and project portfolio managers who would like to learn practical techniques for planning and controlling projects. Program Management Office members who need to understand the informational requirements and limitations of Earned Value Management. Financial Analysts responsible for acquisition and distribution of project budgets.

Prerequisites:
Prior to taking this course, participants should have attended either Introduction to PMI’s A Guide to the Project Management Body of Knowledge (PMBOK Guide) or the Project Management Overview course.

Course Content:
Definitions & Concepts

• Definition of Earned Value Project Management
• EVM’s origin and evolution
• Traditional project cost management vs. EVM

The EVM Body of Knowledge

• Formulas and terminology
• Requirements for an Earned Value control system

Determining Project Scope

• Using a WBS to scope the project
• The WBS dictionary
• “Make” or “Buy” decisions during scope planning

Planning and Scheduling the Project

• Scheduling an earned value project
• Critical path methodology
• Estimating resources
• Control account plans (CAPS)
• Performance Measurement Baseline

Earned Value and Project Procurements

• Differences between labor and procurements
• Six steps for employing EVM on procurements

Monitoring and Controlling

• Validating the performance measurement baseline
• Establishing variance thresholds
• Management reporting

Forecasting Final Cost and Schedule Results

• Estimate at Completion (EAC)
• Management reserve
• Contingency reserve

Using Earned Value to Manage the Project Portfolio

• Calculating the TCPI
• Template for comparing projects
• Guide for Implementing Earned Value on Projects

PMBOK Guide:
Knowledge Areas

• Integration, Scope, Time, Cost, Quality, Human Resources, Communications, Risk, Procurement

Process Groups

• Initiating, Planning, Executing, Controlling, Closing