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Ch- 12 Earned Value Management - Coggle Diagram
Ch- 12 Earned Value Management
Earned Value Management
Is a technique used to manage long term projects, to evaluate progress during the life of the project
It helps you keep track of the overall progress of the project work itself
It also helps you identify whether your spreading is getting out of control
Planned vs. Actual Cost
Actual Cost: Measures the cost we incur over time
Planned Value: provides budgeting cost over time
This information is useful but it provides no info about accomplished projects that are on track to be completed
Planned Value
: Is the budgeted total cost of the work that has been scheduled
Earned Value
: Is the budgeted total cost of the work that has been completed.
This requires the project to have been planned so that every element of work can be quantified in dollars
At the end of each time period, the project manager must review the portion of all work elements that have been completed
Earned Value is the sum of the Planned Value of all completed elements
Earned Value tells us nothing about actual costs; it just reports the progress of the project work itself.
Schedule Variance
Earned Value - Planned Value = Schedule Variance
Measures our work progress in time and money
The horizontal difference measures the difference in time
The vertical difference measures the difference in money
Cost Variance
Earned Value - Actual Cost= Cost Variance
Relative to what we've accomplished, have we spent more or less than we budgeted?
Earned Value: tells us nothing about actual costs it just reports the progress of the project work itself