Earned Value Management (EVM): Measuring Project Performance

Introduction:

Earned Value Management (EVM) is a strategic technique used in project planning and control to assess both cost and schedule performance. This course provides practical approaches to evaluating project expenditures against performance norms, predicting future performance trends, and implementing preemptive measures to address variances. EVM is applicable to various types of projects—private, commercial, or public—making it a versatile tool for managing diverse project environments. This course is designed for individuals seeking to learn and apply earned value management principles effectively.

Objectives:

Participants in the Earned Value Management (EVM) course will gain mastery in:

• Utilizing EVM as a comprehensive program management system.
• Enhancing project management using EVM methods and tools.
• Collaborating with stakeholders to set project goals and implement actionable plans.
• Making informed decisions regarding project scope, cost, and schedule.
• Managing project resources—workload, schedule, and finances—while delegating tasks effectively.
• Applying EVM techniques for project risk management and mitigation.

Training Methodology:

• Case Studies
• Interactive Exercises
• Workshops
• Role Playing
• Simulations
• Group Discussions
• Expert Panels

Course Outline:

Unit 1: Introduction to Earned Value Management (EVM)

• Engineering vs. Management Criteria
• Development of the EVM Concept
• Cost/Schedule Control Systems Criteria
• EVM Model Criteria
• Degree of Performance Measurement in EVM
• EVM’s Role in Project Management

Unit 2: Scope of The Project

• Understanding Project Work Scope
• Work Breakdown Structure (WBS) and Its Role in EVM
• Making Outsourcing Decisions
• Integrating WBS into Earned Value Analysis

Unit 3: Plan and Schedule The Project

• Defining Project Scope
• Objective Planning
• Scheduling Techniques for EVM
• Scheduling’s Impact on Earned Value

Unit 4: Estimate and Budget Project Resources to Form Control Account Plans (CAPs)

• Matching Project Scope with Time and Costs
• Breakdown of Earned Value in CAPs
• Cost Definitions and Estimates
• Control Account, Contingency, and Management Reserves in EVM

Unit 5: Establish The Earned Value Project Baseline

• Planning and Measuring Earned Value
• Developing Control Account Plans
• Establishing the Performance Measurement Baseline
• Managing Baseline Changes and Scope Adjustments

Unit 6: Monitoring Performance Against the Baseline

• Evaluating Performance of CAPs
• Project Management Presentations
• Analyzing Cost and Schedule Variances in EVM
• Contribution of Materials and Subcontracts to Earned Value

Unit 7: Final Cost and Schedule or Time Reassurance

• Factors Affecting Forecasts
• Analyzing Cost and Schedule Results
• Management Reserve/Contingency Reserve
• Estimation at Completion (EAC)
• Over Target Baseline (OTB) Process
• Project Duration Considerations

Unit 8: EVM Reporting

• Subcontractor Reports and Database Submissions
• Cost Reports with Integrated Schedule and Cost Analysis
• EVM Reporting Formats and Their Applications