Earned value management (EVM) is a popular methodology due to its uncanny ability to help project managers better measure project performance. It is a systematic project management process used to find variances in projects based on the comparison of work performed and work planned.
EVM is used on the cost and schedule control and can be very useful in project forecasting. The project baseline is an essential component of EVM and serves as a reference point for all EVM related activities. EVM provides quantitative data for project decision making.
The benefits of EVM are many, but perhaps none rival staying on budget and on time. Without a plan, without using suitable project management techniques, the odds of making the deadline and budget for your next project are slim. Statistics show that less than a third of all projects successfully are completed on time and on budget.
Problems such as unrealistic time frames, frequent changes in plans and processes, and lack of clear goals cause scope creep, eating up time and destroying your bottom line.
EVM is a real-time systematic approach for tracking the cost and schedule associated with a project. EVM essentially compares the current state of your project against your original plans and projections, allowing you to make key adjustments that ultimately ensure your success.
The key to EVM lies in examining, at each stage of a project, the amount of value that has been added (the earned value) by the work done thus far. Doing so allows managers to “micro-schedule” their projects — without “micro-managing”– in order to control budget and schedule at each step.
But just comparing your actual expenditures with your budget can’t tell you whether you’re on, under, or over budget — which is where EVM comes with its proven successful indicators:
- Schedule variance (SV):The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.
- Cost variance (CV):The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.
- Schedule performance index (SPI):The ratio of the approved budget for the work performed to the approved budget for the work planned.
- Cost performance index (CPI):The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task
Earned Value Management Training
Tonex offers several classes in Earned Value Management Training:
- A 2-day Earned Value Management Training (EVM)
- A 2-day Earned Value Management Workshop.
- A 4-day Earned Value Management Training Bootcamp.
- A 2-day Fundamentals of Earned Value Management Training
Tonex Earned Value Management (EVM) Training is fun and is delivered in the form of interactive presentation. It includes lectures, labs, practical exercises, individual and small group activities, and hands-on workshops. The participants are encouraged to bring in their own sample project to work on in the class, or they can simply use the real-world case studies provided by our instructors.
Who Should Attend?
- Project Management Professionals (PMPs)
- Project managers
- Functional managers
- Business leaders
- Mid-level managers
–Reasonably priced classes taught by the best trainers is the reason all kinds of organizations from Fortune 500 companies to government’s most important agencies return for updates in courses and hands-on workshops
–Presenting highly customized learning solutions is what we do. For over 30 years Tonex has worked with organizations in improving their understanding and capabilities in topics often with new development, design, optimization, regulations and compliances that, frankly, can be difficult to comprehend.
–Ratings tabulated from student feedback post-course evaluations show an amazing 98 percent satisfaction score.
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