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EVM stands for?
Earned value management
What is EVM?
Earned value management (EVM) is a project management technique for measuring project performance and progress in an objective manner.
EV stands for?
AC stands for?
PV stands for?
SV stands for?
What is SV?
- Schedule Variance is a delta indicator:
- SV equals Earned Value minus the Planned Value.
- SV > 0 --> good (ahead of schedule)
- SV < 0 --> bad (behind schedule)
- SV == 0 at project completion (all Planned Values will have been Earned)
SPI stands for?
Schedule Performance Index
What is SPI?
- Schedule Performance Index equals
- Earned Value divided by Planned Value
- The Schedule Performance Index is an indicator of project health.
- SPI > 1 --> good (ahead of schedule)
BCWS stands for?
- Budgeted Cost of Work Scheduled
- (aka Planned Value == PV)
BCWP stands for?
- Budgeted Cost of Work Performed
- (aka Earned Value == EV)
PMB stands for?
- Performance Measurement Baseline:
- Actually the planned value curve.
Cells of a RACI matrix are called?
What is RACI an intersection of?
RACI is an intersection of the project Work Breakdown Structure (WBS) and the organizational breakdown structure (OBS)
"control accounts" are part of?
a RACI matrix
"control accounts" are assigned to?
Control Account Managers (CAMs)
CAM stands for?
Control Account Manager (as in RACI)
WBS stands for?
Work Breakdown Structure
OBS stands for?
Organizational Breakdown Structure
ACWP stands for?
- Actual Cost of Work Performed.
- The new name is AC (actual Cost)
BAC stands for?
Budget At Completion
What is the BAC?
The total planned value (PV or BCWS) at the end of the project. If a project has a Management Reserve (MR), it is typically not included in the Budget At Complete (BAC), and respectively, in the Performance Measurement Baseline.
MR stands for?
Cost Variance formula?
- Cost Variance equals Earned Value minus Actual Cost
CV > 0 is good (under budget).
Formula for Cost Performance Index?
- Cost Performance Index equals Earned Value minus Actual Cost
CPI greater than 1 is good (under budget):
< 1 means that the cost of completing the work is higher than planned (bad);
= 1 means that the cost of completing the work is right on plan (good);
> 1 means that the cost of completing the work is less than planned (good or sometimes bad).
Having a CPI that is very high (in some cases, very high is only 1.2) may mean that the plan was too conservative, and thus a very high number may in fact not be good, as the CPI is being measured against a poor baseline. Management or the customer may be upset with the planners as an overly conservative baseline ties up available funds for other purposes, and the baseline is also used for manpower planning.
formula for Estimate At Completion?
- Estimate At Completion (EAC) is the manager's projection of total cost of the project at completion.
- It is calculated by taking the Actual Costs and adding (Budget At Complete minus Earned Value) divided by the Cost Performance Index
Formula for Estimate To Complete?
- Estimate To Complete (ETC) is the estimate to complete the remaining work of the project.
- It is calculated by taking the Estimate At Complete and substracting the Actual Cost
TCPI stands for?
To-complete performance index
The To-complete performance index (TCPI) provides a projection of the anticipated performance required to achieve either the BAC (Budget At Complete)or the EAC (Estimate At Complete). TCPI indicates the future required cost efficiency needed to achieve a target BAC or EAC . Any significant difference between CPI, the cost performance to date, and the TCPI, the cost performance needed to meet the BAC or the EAC, should be accounted for by management in their forecast of the final cost.
Formula for To-Complete Performance Index based upon BAC?
- describing the performance required to meet the original BAC budgeted total.
Formula for To-Complete Performance Index based upon EAC?
- describing the performance required to meet a new, revised budget total EAC
IEAC stands for?
Independent estimate at completion
What is the IEAC?
The Independent estimate at completion (IEAC) is a metric to project total cost using the performance to date to project overall performance. This can be compared to the EAC, which is the manager's projection.
Formula for calculating the IEAC?
- The Independent estimate at completion (IEAC) is calculated by:
Limitations of EVM?
- Earned Value Management (EVM) has no provision to measure project quality, so it is possible for EVM to indicate a project is under budget, ahead of schedule and scope fully executed, but still have unhappy clients and ultimately unsuccessful results.
- In other words, EVM is only one tool in the project manager's toolbox.
What is EVM used for?
- Earned Value Management is used for project tracking (finances)
- It is complementary to critical path or critical chain schedule management.
What is the formula to calculate the EV?
is the sum of the Planned Value
from start to current