This document discusses fundamentals of project management including earned value management. It describes micro and macro levels of project control, with micro focusing on clear tasks, objectives, plans and feedback for team members, and macro focusing on organizational goals, problem/vision/mission and critical aspects to track. Earned value management is described as uniting progress of many tasks into overall project status using a uniform measure like money or hours. Basic earned value metrics are planned value, actual cost and earned value. Formulas for schedule variance, cost variance, schedule performance index, cost performance index and cost schedule index are provided.

1. Fundamentals of Project Management
Earned Value Management
Dima Semchuk

2. Control
1. Micro Level (Team member self-control):
– Clear tasks and objectives
– Personal plan of how to do work
– Skills and resources
– Feedback from work itself (on progress)
– Clear defined authority

3. Control
2. Macro Level (Control system):
– Keep in mind organization’s goals
– Problem / Vision / Mission
– Most critical aspects of project to track
– Exact points when tracking should be performed

4. EVM
Because:
1. Unites progress of many tasks into overall
project status
2. Uniforms unit of measure (money or work-hours)
Will help with an answer:
1. Where we are?
2. What caused a deviation (where to look)?

5. Basic Metrics
• PV – Planned Value
Planned cost of the total amount of work scheduled to be
performed by the date.
• AC - Actual Cost
Cost incurred to accomplish the work that has been done to
date.
• EV – Earned Value
The planned (not actual) cost to complete the work that has
been done.

6. Borrowed  method
Task Work Progress EV Open 0%
Feature 1
In progress 30%
Task 1.1 200 30% 60 Done 60%
Task 1.2 200 0% 0 In testing 80%
Feature 2 Finished 100%
Task 2.1 33,3 60% 19,98
Task 2.2 50 100% 50 * Change values highlighted in orange only
Feature 3
Task 3.1 100 0% 0
Feature 4
Task 4.1 100 0% 0
Feature 5
Task 5.1 50 0% 0
Feature 6
Task 6.1 66,7 0% 0
Task 6.2 200 0% 0
Total 1000 EV 130,0
EV % 13,00%

7. Simple diagram

8. More digits!
• Schedule Variance (EV-PV) Behind schedule if negative
• Cost Variance (EV-AC) Over budget if negative
• Schedule Performance Index (SPI=EV/PV)
SPI<1 project is behind schedule
• Cost Performance Index (CPI= EV/AC)
CPI<1 project is over budget
• Cost Schedule Index (CSI=CPI x SPI)
The closer the to 1, the more likely the project’s can be recovered from it’s
deviation to the original baseline

9. Q&A