Earned Value Analysis

Earned Value Analysis

Introduction

Earned value is a method for measuring project performance. It provides a way of comparing the plan to what has been achieved in both time and cost. Many organisations go part-way to earned value by comparing actual cost versus planned cost. Earned value takes that thinking one fundamental step forward to include a measure of progress. This measure of progress is called earned value and can be compared to the planned progress and expected cost and time. This is a powerful approach for providing a consistent performance standard across a team, a project or an organisation. This course provides in one day, an overview of the key concepts behind earned value and the implementation of a workable system.

Course Aims

• To provide an understanding of how earned value can help measure project performance
• To provide an understanding of the basic theory of earned value management
• To identify the challenges facing organisations wanting to use earned value
• To identify the benefits to organisations in using earned value

Course Objectives
By the end of the course you will be able to:

• Understand the purpose of earned value management
• Understand the questions that earned value can answer
• Understand the relationships between earned value, actual costs and planned value
• Calculate earned value indices
• Forecast final outcomes on cost and schedule
• Interpret earned value information
• Analyse trends using earned value information
• Understand the benefits of and challenges to the use of earned value management

Content

Introduction planning projects measuring progress purpose of earned value management questions that earned value management can answer
Planning and measuring progress work breakdown structures activity network critical path resources schedule baseline tracking budget and spend
Planned value, earned value and actual cost earned value earned value schedule earned value calculations Performance indices schedule performance index cost performance index schedule variance cost variance
Forecasting final outcome estimate at completion time at completion
How to interpret the data earned value graph the formulae so far
Objective measures of progress milestones - % complete equivalent units level of effort apportioned effort
Analysing trends bullseye chart variance trends chart
Benefits of earned value management

Course Includes: Lunch/refreshments and course materials