Earned Value Management Systems
The purpose of this course is to provide a step-by-step explanation of how to integrate cost, schedule, technical planning and control into a total management system for achieving program/project objectives. The course relates these planning and control procedures to the developing philosophy of concurrent engineering and integrated product development.
Management must have an effective system for comparing the actual work being accomplished with the planned increments of work, regardless of the time period in which the work is performed and regardless of whether there is a formal customer requirement. This information is necessary in any size project in order to appraise performance against plan and to seek to identify problem areas early enough to examine a number of alternatives other than simply finding additional funding, slipping the delivery schedule or reducing technical performance. This information is also necessary to appraise the impact of proposed changes.
Course Learning Outcomes
State why a program or project needs to have an information system for assessing cost and schedule performance.
Explain what an earned value management system (EVMS) provides.
Identify the five major categories or activities that comprise the EVMS effort.
Describe how a program is organized and how work is defined.
Develop a work breakdown structure for standard and non-standard systems.
Develop a responsibility matrix and identify control accounts.
Analyze the role of the cross-functional work teams in an EVMS environment.
Explain how integrated schedules are developed to form a schedule baseline and to aid in performing the work effort.
Describe the budgeting process and the major elements that are involved.
Outline the management philosophies on the use of management reserve and undistributed budgets.
Show how a technical performance measurement system is developed and integrated with cost and schedule measurement.
Describe and illustrate the various methods of defining work packages and measuring accomplishment.
Select appropriate earned value methodologies.
Calculate budgeted and earned value for a control account.
Define the accounting requirements for performance measurement.
Explain earned value terminology.
Explain and calculate cost variance and schedule variance.
Explain, calculate and utilize the cost performance index, schedule performance index, to complete performance index, and percent complete.
Interpret variance analysis reports.
Develop estimate at completion.
Describe the impact of program/project changes and revisions, and how they are handled.
Show the effect of changes on the baseline.
Classify the types of reports that can be used in an EVMS.
Describe the implementation steps for an earned value system.