Project managementLesson 2 of 2 in the course Stakeholders and methodologies

Earned Value Management: Measures, Implementation, Forecasting, and Limits

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Earned value management (EVM) combines information about project scope, schedule, and cost to assess performance objectively. This lesson introduces the purpose of EVM, its essential ingredients, and how the method developed.

Earned value management (also called earned value project management or earned value performance management) is a method for measuring project progress and performance by comparing the value of work planned, the value of work completed, and the actual cost of that work.

All flashcards

What is a work breakdown structure (WBS)?
A hierarchical organization of project work that helps define distinct work elements.
What is the Cost Performance Index (CPI)?
A cost-efficiency ratio calculated as CPI=EV/ACCPI = EV/AC.
What is Budget at Completion (BAC)?
The total budget established for all project work.
What is Estimate at Completion (EAC)?
A projection of the total cost expected when all project work is finished.
What is level of effort (LOE) work?
Continuous or non-discrete work that is not measured through distinct deliverable completion.

Quiz questions

  1. Which three project dimensions does earned value management integrate?Answer: Scope, schedule, and cost.
  2. In EVM, what does comparing EV with PV indicate?Answer: How completed work compares with the work planned by that date.
  3. Which comparison indicates cost performance in EVM?Answer: Compare earned value with actual cost.
  4. What does a CPI below 1 indicate?Answer: Earned value is less than actual cost.
  5. What does the To-Complete Performance Index (TCPI) indicate?Answer: The cost efficiency needed on remaining work to meet a target.

Based on the Wikipedia article Earned value management, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

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