Project Management

Earned Value Management Planning Process

During the project planning process, EVM requires the establishment of a performance measurement baseline (PMB). This requirement amplifies the importance of project planning principles, especially those related to scope, schedule, and cost. EVM elevates the need for project work to be executable and manageable and for the workers and managers to be held responsible and accountable for the project’s performance.

 

Project work needs to be broken down—using a work breakdown structure—into executable tasks and manageable elements often called control accounts. Either an individual or a team needs to manage each of the work elements. All of the work needs to be assigned to the workforce for execution using an organization breakdown structure (OBS).

 

Project work needs to be logically scheduled and resourced in a work plan; the work scope, schedule, and cost need to be integrated and recorded in a time-phased budget known as a performance measurement baseline (PMB)

hypothetical work plan with a Gantt (bar) chart, to which earned value measurement has been added.

 

In the planning process, the means for assessing physical work progress and assigning budgetary earned value also needs to be established. In addition to routine project management planning, earned value measurement techniques are selected and applied for each work task, based on scope, schedule, and cost considerations.

 

In the project execution process, EVM requires the recording of resource utilization (i.e., labor, materials, and the like) for the work performed within each of the work elements included in the project management plan. In other words, actual costs need to be captured in such a way that permits their comparison with the performance Measurement Baseline.

 

 

 

 

 

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September 20, 2008 - Posted by | earned value | , ,

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