Learn the Fundamental concepts of Earned Value Management.

Introduction:

Earned Value Management (EVM) supports project managers to measure project performance. It is a systematic project management process used to find variances in projects based on the comparison of work performed and worked planned.

EVM is practiced on the cost and schedule control and can be extremely useful in project forecasting.
EVM helps to provide the basis to assess work progress against a baseline plan, relates technical, time and cost performance offers data for pro-active management action and provides managers with a summary of effective decision making.

It provides a clear communication of the activities involved and improves project visibility and accountability. The fundamental principle of earned value management (EVM) is that the value of the portion of work is equal to the number of funds estimated to complete it.

What is earned value management (EVM)?
The basic concept of earned value management is more than a unique project management process or technique.  It is a parasol term that defines a set of requirements that a contractor’s management system must meet.
Earned Value Management logically schedules the functions so that lower level schedule elements support following elements and the top level milestones
The objectives of an EVM are to:

• Earned value management (EVM) Relate time-phased budgets to particular contract tasks including statements of work.
• EVM Produce the source to capture work progress assessments against the baseline plan.
• Earned value management Relate technical, schedule, and cost performance.
• EVM also Provide valid, timely, and auditable data/information for proactive project management analysis and action.
• EVM Supply managers with a possible level of summarization for the efficient decision-making process.

Benefits of Earned Value Management (EVM):
EVM provides extra information than regular project tracking. It helps to determine more accurately about where we are in the particular project as well as estimate its successful completion.
The value-added approach supports to achieve more excellent visibility and control of the project ventures which helps in responding to issues beginning on, hence making it conceivable to reach the project timelines. Earned Value Management provides a more precise communication of the ventures included and develops project visibility and accountability.

The elementary principle of EVM Project management is that the value of work is equal to the number of funds planned to complete it.

• Planned value: It is the authorized budget for the work scheduled to be accomplished by a set date.
• Earned value: It is an approved budget for the task completed at a specified time.
• Actual costs: The costs genuinely acquired for the work completed by the stipulated date.

To explain your project management schedule and cost performance with Earned Value Management, you have to use the following indicators:

• Schedule variance (SV): The sum of the difference among the work that done upon the number of work that was planned to do. It designates that the project is scheduled or not.
• Cost variance (CV): The type of the difference between the amounts estimated on the work intended to be done and the amount that actually used for the work done. Hence this indicates that the project is on budget or not.
• Schedule performance index (SPI): In this, the ratio within the budget approved for the work that is done in the budget passed on work and was planned It is a relative measure of the project’s time efficiency.
• Cost performance index (CPI): Here the ration between the approved budgets and the budget that was actually spent for the stipulated work. It is a relevant measure of the cost efficiency of the project and can be used to estimate the cost of the remainder of the task.

Course Design:
On the completion of Earned Value Management course, you will acquire the skills to evaluate all the earned value management values and furnish accurate interpretations for all the results. By the end of this course, you will help individuals preparing for project management certification tests.
The course can be Learn by all construction and management professionals like:

• Project manager
• Cost Controller
• Project Scheduler /Planner
• Entry Level
• Project Management
• Graduates from any field
• Engineers
• Management Students

NIBT’s Earned Value Management course will give the opportunity to be a successful Project Manager, Senior Project Manager, Planner, Scheduler, Financial Analyst, Procurement, and Contracts Staff.
Now, what are you waiting for? Enroll in NIBT e-Learning courses and Explore your career.
Conclusion:

• Earned value management EVM methodology takes into account all three triple constraints that may limit a project or cost extra expenditure
• Earned value management is proven value.
• EVM integrates cost, schedule, and technical performance.
• Earned value management provides planning and control disciplines on projects
• Earned value management Controls the project by analyzing cost and performance variations, assessing final costs, developing corrective actions, and controlling changes to the integrated baseline