Guide to Earned Value Management (EVM) - PMP Time Management
Earned Value Management (EVM) is a powerful project management tool that compares the planned value of tasks to the actual completed value. EVM allows project managers to measure project performance and predict future performance based on this information.
Why It's Important: Using EVM in your project management practices gives you an objective measurement of how much work has been accomplished on a project, enabling better oversight and control. It's also a useful method for early identification of project risks.
What It Is: The term Earned Value Management encompasses several values including Planned Value (PV), Actual Cost (AC), and Earned Value (EV). EVM also includes key metrics such as Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI).
How It Works: EVM is based on the concept that work completed has a value equal to the money spent plus the profit. The management system evaluates the actual work completed, compares this to the planned value of the work, and calculates a performance measure.
Exam Tips: Answering Questions on Earned Value Management Practice calculations: The most common type of question you'll find on the PMP exam pertains to calculating EVM values and interpreting the results. It's crucial that you practice these calculations and understand the difference between a positive and negative variance. Memorize key terms and formulas: There are several EVM formulas you will need to memorize for the PMP exam. Apply EVM concepts: Some questions may be scenario-based, asking you to apply EVM concepts to a hypothetical project situation.
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Earned Value Management practice test
Earned Value Management (EVM) is a performance measurement technique that integrates scope, time, and cost data to assess project progress and forecast performance. By comparing the planned value (PV) of work with the earned value (EV) achieved and actual costs (AC) incurred, Project Management Professionals (PMPs) can compute schedule and cost variances (SV and CV) and performance indices (SPI and CPI). EVM enables the early identification of deviations from the plan, allowing project managers to implement corrective actions to mitigate risks and maintain control over schedule and budget. EVM provides key insights into project health by measuring efficiency, estimating completion time, and calculating the value of the remaining work, critical for informed decision-making and project success.
Time: 5 minutes Questions: 5
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Go Premium
Project Management Professional Preparation Package (2024)
- Earn 35 PDUs needed for your PMP certification
- 10107 Superior-grade Project Management Professional practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless PMP preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- bonus: If you upgrade now you get upgraded access to all courses