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Topic Summary

Understanding and / or Applying Earned Value: A “Quick and Easy” Approach for Monitoring Project Implementation

Earned Value Analysis (EVA) has been around since the 1960’s, and is the “Best Practice” methodology for effectively monitoring Integrated Schedule and Cost Project Implementation Performance. However, for most people, EVA is also probably the most difficult aspect of PMI’s PMP Exam because it consists of multiple formulas. Furthermore, even for certified PMPs - somewhat like calculus - EVA is the least understood of the various Project Management tools and technologies.  Consequently, EVA is less likely to actually be used on-the-job for integrated project time and cost performance monitoring.

This is regrettable because without EVA most traditional project cost monitoring practices and performance analyses are erroneous! The result is invalid Cost Assessments and recommendations, which in turn lead to incorrect Management Decisions. To resolve this issue, I will present the following concepts, techniques and tools which are not addressed in the PMBOK:
1. a graphic network working method for developing a project’s Baseline Budget
2. the three key relationships between Planned Value, Earned Value, and Actual Cost
3. an S-Curve ‘Transform’ graphic that displays PV and EV for the life-of-project (LOP) duration
4. the 13 different states possible during project implementation
5. demonstrate why - most of the time - traditional monitoring of baseline budgeting is wrong
6. a ‘Quick and Easy’ template (IPPSTAT) and Project Performance Index (PPI) for accurately monitoring and reporting current integrated project implementation status, as well as forecasting end of project status (EOPS)
You can use all six of the above items to supplement the PMBOK in studying for the PMP exam; or - if  you are beyond (or wish to bypass) that hurdle - to apply them on-the-job in order to monitor your projects more effectively and efficiently.
NOTE: Earned Value (with all its concepts, formulas and examples) is discussed in much more detail - together with many other Project Management and Evaluation (PME) tools and techniques - in my recently published book Project Management PRAXIS, now available from AMAZON.