Earned Value Management is a methodology that combines Scope, Schedule and resource measurements to measure project performance and progress. It is a commonly used method of performance measurement for projects. EVM monitors three key dimensions which are Planned Value, Earned Value and Actual Cost to determine the Cost and Schedule Variance. In this tutorial I will walk you through a simple example project of painting a 4 wall room and applying the project progress against the cost and schedule to determine the EVM which will indicate if the project is progressing as planned and or if it is ahead or behind schedule from a Schedule and Cost perspective. Earned Value management technique helps the PM to quickly understand if the project is on track as planned or not.
CV = Cost Variance - 0 indicates there is no variance, Negative indicates that we are overspending and Positive indicates we are underspending.
SV = Schedule Variance: 0 Indicates there is no variance, Negative indicates that we are behind schedule and Positive indicates that we are ahead of schedule.
Similarly CPI and SPI indicates where we are on track, ahead or behind based on 0, greater than 1 or less than 1 respectively.
In this video we will apply the earned value formula's and explain the formula and the results with a simple and easy to understand painting a wall example. The excel version of the example can be downloaded from my website.
#EVM #EarnedValue #ProjectManagement #NiksProjects
You can support this channel by becoming a patreon -
Corporation Motivation by Audionautix is licensed under a Creative Commons Attribution license (
Artist:
0 Comments