Earned Value Management

Earned value management (EVM) is considered by many project management professionals to be one of the most difficult topics in the PMBOK® Guide published by the Project Management Institute. Proper application of the earned value management technique to real-world projects seems to be even more challenging. The reason probably is the false notion that it is a complex methodology. This two-day seminar offers an easy and effective way to learn how to apply the earned value management technique to real world projects using a fun and proprietary game developed by Dr. Prasad Kodukula, PMP, PgMP. The seminar participants, in small independent teams, use the game as a project. First they develop scope, cost, and schedule baselines. After partial execution of the project, by applying the earned value management technique, they determine the project status; report the progress made, and forecast the future needs. Scope changes, unanticipated risks, and other common project “surprises” are also addressed. In a highly interactive, fast-moving, fun-filled environment, teams compete to finish the project early and under budget avoiding penalties for late completion and cost overrun.

Every seminar participant will receive a seminar manual and a widely popular credit-card size laminated card summarizing the earned value formulas. Active participants and peak performers will receive “fabulous” prizes through out the seminar.

Who Should Attend:

• Senior managers
• Decision makers
• Portfolio managers
• Program managers
• Marketing managers
• Project managers

What You Will Learn:

• Recognize the power of earned value management (EVM) to track, control, and manage project costs.
• Create proper work breakdown structure (WBS) in order to effectively apply EVM technique.
• Build a network diagram, allocate resources, and develop project schedule using Gantt chart.
• Estimate project costs in accordance with EVM principles.
• Develop a performance measurement baseline that integrates project scope, schedule and budget which you will use to manage project performance.
• Apply EVM tools to real-world projects to control and manage cost and schedule.
• Calculate variances and performance indexes to determine the project status on budget and schedule.
• Forecast future budget and resource needs by analyzing different scenarios (e.g., continue at the same cost performance level as to-date; perform at the baseline performance level for the reminder of the project, irrespective of the performance to-date; complete the project at the original estimate; etc.)
• Track and utilize budget and schedule contingencies as part of the EVM method.
• Generate easy-to-read/understand EVM reports for management.
• Learn what is considered a dry subject in a hands-on, entertaining, and fun-filled environment.

Seminar Outline

Introduction
Objectives
Why Earned Value Management?
Earned Value Management: History
Earned Value Management System Criteria Groups
Why the name "Earned Value Management"?

Earned Value Management Method
Objectives
EVM Method Basics
10-Step EVM Process

Project Baseline
Work Breakdown Structure
Network Diagram
Cost Estimates
Cost Account Plans
LOE Work Packages
Performance Measurement Baseline
PMB Revisions

Earned Value Management Metrics
How to Measure Earned Value
EVM Performance Indicators
EVM Performance Indicators: Formulas
CV and SV
CPI and SPI
Tolerance Limits
%CV and SV Tolerance Limits
CPI and SPI Tolerance Limits
CPI and SPI "Bull's Eye" Chart
Likely Causes of Significant Variance

Earned Value Management Forecast Indicators
Various Future Scenarios
EVM Forecast Indicators: Formulas
Variance at Completion

Challenges with Earned Value Management Method
Government Experience
Private Sector Practice
What It Takes to Make it Work