Earned Value Management In One Slide Earned Value Management In One Slide

This is a simple project in which the This is a simple project in which the first reported period has completed. first reported period has completed. $300K was planned to be spent, $300K was planned to be spent, $300K was actually spent, but only $300K was actually spent, but only $200K of physical progress has $200K of physical progress has been made. been made. In the traditional project In the traditional project management method, weve spent management method, weve spent to our plan, so were right on track. to our plan, so were right on track. Were OK. Were OK. In EV weve spent to plan, but In EV weve spent to plan, but underdelivered, by $100K. Were underdelivered, by $100K. Were in trouble. in trouble. Now we need to increase our Now we need to increase our efficiency just to get back on track efficiency just to get back on track and increase even more to stay and increase even more to stay ahead. ahead. By reducing the reporting period to By reducing the reporting period to finer and finer granularity, software finer and finer granularity, software development methods like Extreme development methods like Extreme Programming and SCRUM can be Programming and SCRUM can be laid over the Earned Value system. laid over the Earned Value system. Adding Testable requirements to Adding Testable requirements to these methods re-connects EV with these methods re-connects EV with agile development, closing the loop agile development, closing the loop between traditional and agile between traditional and agile

$1,000K

Authorized Budget = $1,000K

$750K Planned Cost = $300K $500K Actual Cost = $300K $250K 1 2 Earned Value = $200K 3 4

Traditional Project Management Traditional Project Management Planned Cost = $300K Actual Costs = $300K Variance from Plan = ($0K)

Earned Value Project Management Earned Value Project Management Planned Cost = $300K Earned Value = $200K Actual Cost = $300K
2002 CH2M HILL Communications Group

SV = BCWPBCWS: Schedule Variance from Plan = (-$100K) CV = BCWPACWP: The true cost Variance = (-$100K)

Source: Earned Value Project Management 2nd Edition, Quentin Fleming, PMI 2000
BD02005 A 08/29/02