Practice Standard for Earned Value Management, 2nd Edition

Practice Standard for Earned Value Management, 2nd Edition

Released October 2011
Publisher(s): Project Management Institute
ISBN: 9781935589358

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Book description

The Practice Standard for Earned Value Management—Second Edition expands on the earned value information in A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –Fourth Edition. EVM is often referred to as “management with the lights on” because it helps objectively and succinctly identify where a project is and where it is going. The methodology incorporates project scope, schedule and costs, and the process is applicable across many Knowledge Areas and Process Groups. This practice standard is intended for anyone who wants to better develop their project management toolset and know how to potentially improve project performance through the use of earned value.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Table of Contents
  5. Chapter 1 - Introduction
    1. 1.1 Purpose of this Practice Standard
    2. 1.2 Relationship to the PMBOK® Guide
    3. 1.3 Assumptions
    4. 1.4 Structure of the Practice Standard
  6. Chapter 2 - Earned Value Project Management Overview
    1. 2.1 Introduction
    2. 2.2 EVM and the Project Management Process
    3. 2.3 Basic EVM Terminology
    4. 2.4 Basic EVM Concepts
    5. 2.5 Considerations
  7. Chapter 3 - Organize Project
    1. 3.1 Introduction
    2. 3.2 Inputs
      1. 3.2.1 Project Charter
      2. 3.2.2 Stakeholder Management Strategy
      3. 3.2.3 Requirements Documentation
    3. 3.3 Description
      1. 3.3.1 Product Analysis
      2. 3.3.2 Alternatives Analysis
      3. 3.3.3 Decomposition
    4. 3.4 Outputs
      1. 3.4.1 Scope Management Plan
      2. 3.4.2 Project Scope Statement
      3. 3.4.3 Work Breakdown Structure
      4. 3.4.4 Work Breakdown Structure Dictionary
      5. 3.4.5 Scope Baseline
    5. 3.5 Considerations
      1. 3.5.1 Constructed with Technical Expertise
    6. 3.6 Summary
  8. Chapter 4 - Assign Responsibility
    1. 4.1 Introduction
    2. 4.2 Inputs
      1. 4.2.1 Scope Baseline
    3. 4.3 Description
      1. 4.3.1 Create Organizational Structure
      2. 4.3.2 Integrate WBS and Organizational Structure
    4. 4.4 Outputs
      1. 4.4.1 Organizational Breakdown Structure
      2. 4.4.2 Responsibility Assignment Matrix
    5. 4.5 Considerations
      1. 4.5.1 Level of Detail
      2. 4.5.2 Maintenance
    6. 4.6 Summary
  9. Chapter 5 - Develop Schedule
    1. 5.1 Introduction
    2. 5.2 Inputs
      1. 5.2.1 Scope Baseline
      2. 5.2.2 Resource Breakdown Structure
    3. 5.3 Description
      1. 5.3.1 Schedule Tool
      2. 5.3.2 Schedule Structure
      3. 5.3.3 Schedule and Budget Relationship
    4. 5.4 Outputs
      1. 5.4.1 Integrated Master Schedule
    5. 5.5 Considerations
      1. 5.5.1 Schedule Evolution
    6. 5.6 Summary
  10. Chapter 6 - Establish Budget
    1. 6.1 Introduction
    2. 6.2 Inputs
      1. 6.2.1 Project Charter
      2. 6.2.2 Responsibility Assignment Matrix
      3. 6.2.3 Schedule Baseline
    3. 6.3 Description
      1. 6.3.1 Establish a Budget Structure
      2. 6.3.2 Develop the Cost Estimate
      3. 6.3.3 Authorize the Work
      4. 6.3.4 Update the Project Budget Log
    4. 6.4 Outputs
      1. 6.4.1 Project Budget
      2. 6.4.2 Project Funding Requirements
      3. 6.4.3 Project Budget Log
      4. 6.4.4 Control Account Plans
    5. 6.5 Considerations
      1. 6.5.1 Budget Versus Funding
    6. 6.6 Summary
  11. Chapter 7 - Determine Measurement Methods
    1. 7.1 Introduction
    2. 7.2 Inputs
      1. 7.2.1 Requirements Documentation
      2. 7.2.2 Statement of Work
      3. 7.2.3 Scope Baseline
      4. 7.2.4 Integrated Master Schedule
      5. 7.2.5 Project Budget
    3. 7.3 Description
      1. 7.3.1 Discrete Effort
        1. .1 Fixed Formula
        2. .2 Weighted Milestone
        3. .3 Percent Complete
        4. .4 Physical Measurement
      2. 7.3.2 Apportioned Effort
      3. 7.3.3 Level of Effort (LOE)
    4. 7.4 Outputs
      1. 7.4.1 Performance Measurement Methods
      2. 7.4.2 Control Account Plan Updates
    5. 7.5 Considerations
      1. 7.5.1 Select the Method
      2. 7.5.2 Rules of Measurement
      3. 7.5.3 Measurement of Procurements
    6. 7.6 Summary
  12. Chapter 8 - Establish Performance Measurement Baseline
    1. 8.1 Introduction
    2. 8.2 Inputs
      1. 8.2.1 Scope Baseline
      2. 8.2.2 Integrated Master Schedule
      3. 8.2.3 Project Budget
      4. 8.2.4 Risk Register
        1. .1 Agreed-Upon Response Strategies
        2. .2 Contingency Reserves
        3. .3 Contract Decisions
    3. 8.3 Description
      1. 8.3.1 Project Management Plan Integration
      2. 8.3.2 The Project Budget Base (PBB)
      3. 8.3.3 Management Reserve
      4. 8.3.4 Performance Measurement Baseline
        1. .1 Undistributed Budget
        2. .2 Summary Level Planning Budgets
        3. .3 Control Account Budgets
      5. 8.3.5 Rolling Wave Planning
    4. 8.4 Outputs
      1. 8.4.1 Performance Measurement Baseline
      2. 8.4.2 Project Funding Requirements Updates
      3. 8.4.3 Project Document Updates
      4. 8.4.4 Contract Decisions (Revised)
      5. 8.4.5 Formal Acceptance
    5. 8.5 Considerations
      1. 8.5.1 Method for Scheduling Level of Effort Work
      2. 8.5.2 Method for Allocating Indirect Costs
      3. 8.5.3 Impact of Different Types of Resources and Costs
      4. 8.5.4 Method for Incorporating Contingency Reserves into the PMB
      5. 8.5.6 Integration of Subcontractor Baselines
    6. 8.6 Bicycle Project Example
    7. 8.7 Summary
  13. Chapter 9 - Analyze Project Performance
    1. 9.1 Introduction
    2. 9.2 Inputs
      1. 9.2.1 Project Management Plan
      2. 9.2.2 Work Performance Information
        1. .1 Planned Value
        2. .2 Earned Value
        3. .3 Actual Cost
        4. .4 Budget at Completion
    3. 9.3 Description
      1. 9.3.1 Performance Analysis
        1. .1 Schedule Analysis
        2. .2 Cost Analysis
      2. 9.3.2 Forecasting
        1. .1 Estimate to Complete
        2. .2 Estimate at Completion
        3. .3 Variance at Completion
        4. .4 To-Complete Performance Index
      3. 9.3.3 Percentage Comparisons
      4. 9.3.4 Trend Analysis
    4. 9.4 Outputs
      1. 9.4.1 Performance Measurement Methods
      2. 9.4.2 Funding Forecasts and Trends
      3. 9.4.3 Corrective and Preventive Actions
    5. 9.5 Considerations
      1. 9.5.1 Management by Exception
      2. 9.5.2 Communication with Earned Value Data
        1. .1 Tables
        2. .2 Bar Charts
        3. .3 Curves
    6. 9.6 The Bicycle Case Study
      1. 9.6.1 Analyzing the Data
      2. 9.6.2 Graphical Analysis of the Data
        1. .1 Graphical Display of PV, EV, and AC
        2. .2 Graphical Display of at Completion Data and Forecasts
        3. .3 Graphical Display Project Variances
        4. .4 Graphical Display of Project Indices
      3. 9.6.3 Summary of Data and Graphical Analysis
      4. 9.6.4 Management by Exception and Variance Analysis
    7. 9.7 Summary
  14. Chapter 10 - Maintain Performance Measurement Baseline
    1. 10.1 Introduction
    2. 10.2 Inputs
      1. 10.2.1 Project Management Plan
      2. 10.2.2 Performance Measurement Baseline
      3. 10.2.3 Change Requests
      4. 10.2.4 Integrated Change Control System
    3. 10.3 Description
      1. 10.3.1 Change Control Board Meetings
      2. 10.3.2 Scope Change Analysis
      3. 10.3.3 Cost and Schedule Rebaselining
    4. 10.4 Outputs
      1. 10.4.1 Performance Measurement Baseline Updates
      2. 10.4.2 Project Management Plan Updates
      3. 10.4.3 Change Request Status Updates
    5. 10.5 Considerations
    6. 10.6 Threaded Example for Bicycle Project
    7. 10.7 Summary
  15. References
  16. Appendix A - Guidelines for a Project Management Institute Practice Standard
  17. Appendix B - Evolution of PMI'S Practice Standard for EVM
  18. Appendix C - Contributors and Reviewers of the Practice Standard for Earned Value Management—Second Edition
  19. Appendix D - Schedule Analysis using EVM Data
  20. Appendix E - Integrating Earned Value Management with Risk Management
  21. Appendix F - Deployment of EVM Systems
  22. Appendix G - Pitfalls and Recommendations
  23. Glossary
  24. Index

Product information

  • Title: Practice Standard for Earned Value Management, 2nd Edition
  • Author(s):
  • Release date: October 2011
  • Publisher(s): Project Management Institute
  • ISBN: 9781935589358