PMBOK “the processes required to acquire goods and services’;
Procurement schedule (as such) should only be considered after the network diagram and schedule bar chart has been finalized but before the resource histograms and cash flow statements – thus what, when before how much and how much when….
52% of all projects finish at 189% of their initial budget
And some, after huge investments of time and money, are simply never comple
Source: The Standish Group
What is Earned Value? Earned Value is an approach for understanding and assessing what a project is achieving with budgeted money.
What Do You Need for EVA? 100 40 60 15 25 30 30 3. Allocate Budgets 1. Define the Work 2. Schedule the Work R PM Baseline Contract Budget Base Time
Managing Without EVA Example you budget 100 hours to assemble bridge Pillars and at the end of the period you have achieved the 100 hours Wow we are on budget ! R 0 R 100 hours @ R 300 100 hours @ R 300 Variance Actual Budget
Managing Without EVA Does this mean we have achieved 100 hours worth of work ? Actual cost is not an indication of progress, - Only an indicator of hours/money spent.