Getting Started with Earned Value Management
and Organize all Project Steps
First, identify all tasks that need to be accomplished
and organize the tasks into sub-groups (1). Breaking down
activities into the smallest possible steps makes it easier to pinpoint
schedule and cost performance problems.
Allocate the Budget
and Schedule Tasks
Each activity in the project should have a planned Budget-at-Completion
(BAC). All subsequent earned value calculations will be based on this
amount (2). In addition to the BAC, each task should also
have a specific duration (3), which provides the basis for
monitoring actual costs and physical progress.
Task Status and Enter Actual Costs
As the project progresses, percent complete for unfinished tasks should
be updated and monitored (4). Earned Value (EV) is
determined by relating this physical progress to the BAC. Along with
task status and budget, it is necessary to maintain actual costs accrued
for each task in order to calculate cost performance (5).
Use the Data to Make Informed
Now that all tasks have been scheduled, and the BAC, EV, Percent
Complete, and AC are known, further analysis can be performed, including
schedule and cost variances, performance efficiency, and
Successfully Presenting Earned Value is a free
e-book which will help you learn to implement and present Earned
Value schedules. It offers both an explanation of Earned Value
Management principles, and step-by-step instructions. This
e-book is offered at no charge. After reviewing it, you may be
interested in downloading our Milestones Professional software.
Milestones Professional was used to produce the
presentation-ready Earned Value reports shown in the e-book and
can be used to make schedules in many formats, including Gantt
charts, Milestone charts, Summary charts, Resource Charts and