Professional Development Seminar Series - PMP Certification Training Courses and Exam ... ·...
Transcript of Professional Development Seminar Series - PMP Certification Training Courses and Exam ... ·...
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Professional Development Seminar Series
Earned Value Management System
March, 2016
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Agenda
Introduction to 3FOLD Education Centre
Definition
Context
Project Cost Management
EVM Metrics
Cost Control Formula
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Introduction
Approved by PMI, AACEI, ASQ and IMA
We are also approved by KHDA.
Trained more than 6000 students.
Branches in Dubai, Abu Dhabi and Qatar.
Our flagship preparation courses are PMP and CCP.
Contact us: [email protected]
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Definition
Introduction to Earned Value Management
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Definition
Earned Value Management. A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
Earned Value (EV). The measure of work performed expressed in terms of the budget authorized for that work.
Earned Value is also known as Budgeted Cost of Work Performed (BCWP).
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Context
Earned Value Management in Project Management
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Project Cost Management
As per the PMBOK® Guide 5th Edition, “Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.”
• Plan Cost Management
• Estimate Costs
• Determine Budget
• Control Cost
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Page 193.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
What is a Process ?
A systematic series of activities directed towards causing an end result such that one or more inputs will be acted upon to create one or more outputs.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-10, Page 215.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Process Interaction
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-11, Page 217.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Project Cost Management Processes
Plan Cost Management—The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project activities.
Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Control Costs—The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
1. Plan Cost Management
The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-2, Page 195.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Cost Management Plan - Content
Units of measure
Level of precision
Level of accuracy
Organizational procedures link
Control thresholds
Reporting formats
Rules of progress measurement – this is where Earned value management (EVM) rules of performance measurement are set.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
2. Estimate Costs
Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-4, Page 200.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Contingency Reserve
Cost estimates may include contingency reserves (sometimes called contingency allowances) to account for cost uncertainty.
Contingency reserves are the budget within the cost baseline that is allocated for identified risks, which are accepted and for which contingent or mitigating responses are developed.
Contingency reserves are often viewed as the part of the budget intended to address the “known-unknowns” that can affect a project.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Management Reserve
Estimates may also be produced for the amount of management reserve to be funded for the project.
Management reserves are an amount of the project budget withheld for management control purposes and are reserved for unforeseen work that is within scope of the project.
Management reserves are intended to address the “unknown unknowns” that can affect a project.
The management reserve is not included in the cost baseline but is part of the overall project budget and funding requirements.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
3. Determine Budget
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-6, Page 208.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Cost Baseline
The cost baseline is the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures and is used as a basis for comparison to actual results.
It is developed as a summation of the approved budgets for the different schedule activities.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Project Budget Components
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-8, Page 213.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
S-curve
Since the cost estimates that make up the cost baseline are directly tied to the schedule activities, this enables a time-phased view of the cost baseline, which is typically displayed in the form of an S-curve
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-9, Page 214.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
4. Cost Control
Earned Value Management
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
4. Control Costs
Control Costs is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-10, Page 215.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Cost Control Tools and Techniques – on focus
1. Earned Value Metrics
2. Progress Measurement
3. Performance Measurement
4. Forecasting
5. To-complete performance index (TCPI)
6. Variance At Completion
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
1. EVM Metrics
Planned Value, Actual Cost, Earned Value
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
EVM Metrics
EVM develops and monitors three key dimensions for each work package and control account:
• Planned value
• Actual cost
• Earned Value
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Planned Value
Planned value (PV) is the authorized budget assigned to scheduled work.
It is the authorized budget planned for the work to be accomplished for an activity or work breakdown structure component, not including management reserve.
This budget is allocated by phase over the life of the project, but at a given moment, planned value defines the physical work that should have been accomplished.
The total of the PV is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC).
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Actual Cost
Actual cost (AC) is the realized cost incurred for the work performed on an activity during a specific time period.
It is the total cost incurred in accomplishing the work that the EV measured.
The AC needs to correspond in definition to what was budgeted in the PV and measured in the EV (e.g., direct hours only, direct costs only, or all costs including indirect costs).
The AC will have no upper limit; whatever is spent to achieve the EV will be measured.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Earned Value
Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget associated with the authorized work that has been completed.
The EV being measured needs to be related to the PMB, and the EV measured cannot be greater than the authorized PV budget for a component.
The EV is often used to calculate the percent complete of a project.
Progress measurement criteria should be established for each WBS component to measure work in progress.
Project managers monitor EV, both incrementally to determine current status and cumulatively to determine the long-term performance trends.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Earned Value
Earned Value = % completed x Budget
Progress measurement technique measures the percent complete which will assist in calculating the earned value. The budget is the budgeted cost of the measured component which could be a work package, control account, or the project.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
2. Progress Measurement
Units completion, Start/Finish, Incremental Milestone, Supervisor Opinion, Cost Ratio and
Equivalent Units/Weighted Average
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Units Completion
Formula
𝑰𝒏𝒔𝒕𝒂𝒍𝒍𝒆𝒅 𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚
𝑻𝒐𝒕𝒂𝒍 𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚x 100
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Start/Finish (Fixed Formula)
30% 100%
Start Finish
This method is applicable to tasks that lack readily definable intermediate milestones or those for which the effort/time required is very difficult to estimate.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Incremental Milestone
30%
Start Finish
60% 80% 100%
This method is applicableto any control account that includes subtasks that must be handled in sequence.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Supervisor Opinion
In this method, the supervisorsimply makes a judgment of percent complete.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Cost Ratio
This method is applicable to tasks that involve a long period of time or that are continuous during the life of a project, and which are estimated and budgeted on bulk allocations of dollars and work hours rather than on the basis of production.
𝑨𝒄𝒕𝒖𝒂𝒍 𝒄𝒐𝒔𝒕 𝒐𝒓𝑾𝒐𝒓𝒌𝒉𝒐𝒖𝒓𝒔 𝒕𝒐 𝒅𝒂𝒕𝒆
𝑭𝒐𝒓𝒆𝒄𝒂𝒔𝒕 𝒂𝒕 𝑪𝒐𝒎𝒑𝒍𝒆𝒕𝒊𝒐𝒏x 100
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Weighted or Equivalent Units
This method is applicable when the task being controlled involves a long period of time and is composed of two or more overlapping subtasks, each with a different unit of work measurement.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Allowed Credit
Subtask Total U/M Total Qty To-Date Qty Earned Tons
0.02run foundation bolts each 120 120 12.00
0.03shim % 100 100 18.00
0.06shakeout % 100 100 36.00
0.04columns each 80 70 21.00
0.12beams each 987 230 16.78
0.12cross braces each 780 0 0.00
0.17girts and sag roads bay 40 0 0.00
0.08plumb and align % 100 0 0.00
0.31connection each 3000 90 5.58
0.05punch list % 100 0 0.00
1Steel Totals Ton 600 109.36
Earned Quantity = (allowed credit)*(summary quantity)*𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑡𝑜 𝑑𝑎𝑡𝑒
𝑡𝑜𝑡𝑎𝑙 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦
Earned Tons Columns=
.04 x 600 x 70
80
21 Tons
Percent Complete=
109.36
600
18.23%
Equivalent Units
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Earned Value Calculation
Wall 1
Wal
l 2
Wall 3
Wal
l 4
Schedule PlanSchedule: To complete the work in 4 weeks – work is equally distributed
Budgeted CostUSD 10,000 per side
Status at the end of week 3Wall 1 – 100% - $ 12000Wall 2 – 100% - $ 13000Wall 3 – 50% - $ 7000Wall 4 – 0% - $ 0
Calculate BAC, PV, AC and EV
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Solution
Work Package
Planned Value
Actual Cost Progress EarnedValue
Wall 1 10000 12000 100 % 10000
Wall 2 10000 13000 100 % 10000
Wall 3 10000 7000 50 % 5000
Wall 4 10000 0 0 % 0
Total 40000 32000 25000
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
3. Performance Measurement
Cost Variance, Cost Performance Index, Schedule Variance, Schedule Performance Index
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Performance MeasurementCost Performance
Cost Variance Cost Performance Index
Earned Value – Actual Cost𝑬𝒂𝒓𝒏𝒆𝒅 𝑽𝒂𝒍𝒖𝒆
𝑨𝒄𝒕𝒖𝒂𝒍 𝑪𝒐𝒔𝒕Positive = Under planned costNeutral = On planned costNegative = Over planned cost
Greater than 1.0 = Under planned costExactly 1.0 = On planned costLess than 1.0 = Over planned cost
Schedule Performance
Schedule Variance Schedule Performance Index
Earned Value – Planned Value 𝑬𝒂𝒓𝒏𝒆𝒅 𝑽𝒂𝒍𝒖𝒆
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑽𝒂𝒍𝒖𝒆Positive = Ahead of ScheduleNeutral = On scheduleNegative = Behind Schedule
Greater than 1.0 = Ahead of scheduleExactly 1.0 = On scheduleLess than 1.0 = Behind schedule
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
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Cost Performance
Cost Variance Cost Performance Index
25000 – 32000 = (7000) 25000 / 32000 = 0.781
Schedule Performance
Schedule Variance Schedule Performance Index
25000 – 30000 = (5000) 25000 / 30000 = 0.833
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
4. Forecasting
Estimate At Completion & Estimate To Complete
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
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BAC = $ 40,000 PV = $ 30,000 AC = $32,000 EV = $ 25,000 CPI = 0.781 SPI = 0.833
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Estimate At Completion
Estimate At Completion
EAC EAC
𝑩𝑨𝑪
𝑪𝑷𝑰AC + (BAC – EV)
CPI is expected to be the same for the remainder of the project
Future work will be accomplished at the planned rate
EAC EAC
AC + (𝑩𝑨𝑪 −𝑬𝑽)
(𝑪𝑷𝑰 𝒙 𝑺𝑷𝑰)AC + Bottom up ETC
CPI and SPI influence the remaining work Initial plan is no longer valid
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
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Estimate At Completion
EAC EAC
𝟒𝟎𝟎𝟎𝟎
𝟎.𝟕𝟖𝟏= 51216 32000 + (40000 – 25000) = 47000
CPI is expected to be the same for the remainder of the project
Future work will be accomplished at the planned rate
EAC EAC
32000 + (𝟒𝟎𝟎𝟎𝟎 −𝟐𝟓𝟎𝟎𝟎)
(𝟎.𝟕𝟖𝟏 𝒙 𝟎.𝟖𝟑𝟑)= 55055 32000 + Bottom up ETC
CPI and SPI influence the remaining work Initial plan is no longer valid
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Estimate To Complete
Estimate To Complete
ETC ETC
EAC – AC Re-EstimateAssumes work is proceeding on plan. Re-estimate the remaining work from the bottom up.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Estimate To Complete
ETC ETC
51216 – 32000 = 19216CPI is expected to be the same for the remainder of the project. Re-Estimate
Assumes work is proceeding on plan. Re-estimate the remaining work from the bottom up.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
5. TCPI
To Complete Performance Index
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
To Complete Performance Index
To Complete Performance Index
TCPI TCPI
(BAC – EV)/(BAC – AC) (BAC – EV)/(EAC – AC)
The efficiency that must be maintained in order to complete on plan.
The efficiency that must be maintained in order to complete the current EAC.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
To Complete Performance Index
TCPI TCPI
(BAC – EV)/(BAC – AC)
(40000-25000) / (40000-32000)
1.875
(BAC – EV)/(EAC – AC)
(40000-25000) / (51216-32000)
0.781
The efficiency that must be maintained in order to complete on plan.
The efficiency that must be maintained in order to complete the current EAC.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
6. Variance At Completion
VAC
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
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Variance At Completion
Variance At Completion
VAC
BAC – EACThe estimated difference in cost at the completion of the project.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
CPI = 0.781 SPI = 0.833 EAC = $ 51216 ETC = $ 19216
Variance At Completion
VAC
BAC – EAC
40000 – 51216 = (11216)
The estimated difference in cost at the completion of the project.
BAC = $ 40,000 BCWS = $ 30,000 ACWP = $32,000 BCWP = $ 25,000
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Productivity Analysis
Work Quantities UnitsWork Hours
% CompleteActual Work Hours
Earned hours
Mobilization 1 Lot 50 100% 80 50Excavation 300 CF 100 100% 120 100Sub-Foundation 100 CF 50 100% 90 50Slab Placement 100 CY 270 50% 190 135Support Steel 2 Tons 60 10% 9 6Piping 30 Lot 90 10% 4 9Boiler Installation 1 Lot 50 0 0 0Utlilities 1 Lot 80 0 0 0Startup 1 Lot 100 0 0 0Cleanup 1 Lot 50 0 0 0Demobilization 1 Lot 50 0 0 0
950 493 350
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
Productivity Analysis
Credit Work Hours (CWH) (budgeted unit rate) x (units completed to date)
Credit Work Hours (CWH) (Work Package)
% complete x budget for the work package
Productivity Index (PI) CWH ÷ a c t u a l work hours
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
© 2017 3FOLD Education Centre . All rights reserved . [email protected] . www.pmexamstudy.com . www.3foldtraining.com . PMP® Exam Review
End of the Seminar
Thank you