Examine how the PM uses project control charts to show project status and present value
Solution
Earned Value Management (EVM) is a project management technique for measuring project performance and progress. It integrates scope, cost and schedule measures to assess the performance of a project. Based on the three measures a baseline cost and schedule is developed and actual performance is measured w.r.t to the baseline values.
The following are the key measures and performance indexes of the EVM technique:
Planned Value (PV): This is the authorized budget allocated to the work to be accomplished for an activity. It is also known as budgeted cost of work scheduled (BCWS)
Earned Value (EV): This is the value of work performed expressed in terms of the approved budget assigned to work for an activity. It is also known as budgeted cost of work performed (BCWP).
Actual Cost (AC): This is the actual cost incurred in accomplishing the work performed for an activity. It is also known as Actual Cost of Work Performed (ACWP).
Schedule Variance (SV): Schedule variance is calculated as SV = EV
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Examine how the PM uses project control charts to show project status.docx
1. Examine how the PM uses project control charts to show project status and present value
Solution
Earned Value Management (EVM) is a project management technique for measuring project
performance and progress. It integrates scope, cost and schedule measures to assess the
performance of a project. Based on the three measures a baseline cost and schedule is developed
and actual performance is measured w.r.t to the baseline values.
The following are the key measures and performance indexes of the EVM technique:
Planned Value (PV): This is the authorized budget allocated to the work to be accomplished for
an activity. It is also known as budgeted cost of work scheduled (BCWS)
Earned Value (EV): This is the value of work performed expressed in terms of the approved
budget assigned to work for an activity. It is also known as budgeted cost of work performed
(BCWP).
Actual Cost (AC): This is the actual cost incurred in accomplishing the work performed for an
activity. It is also known as Actual Cost of Work Performed (ACWP).
Schedule Variance (SV): Schedule variance is calculated as SV = EV
