a short story about earned value management
TRANSCRIPT
A short story about
Earned Value Managementby Mark
Bob
Duration: 5 daysRate: $2,000 per dayBudget: $10,000
Monday
Tuesday
Wednesday
Thursday
Complete: 50%
Friday
Saturday
Sunday
How could this be avoided?
Monday
Complete: 10%Earned value: $1,000Actual cost: $2,000
Performance = Earned Value / Cost
$1,000 / $2,000 = 0.5
Forecast = Budget / Performance
$10,000 / 0.5 = $20,000
Tuesday
Wednesday
Complete: 50%Earned value: $5,000Actual cost: $6,000
Performance = Earned Value / Cost
$5,000 / $6,000 = 0.833
Forecast = Budget / Performance
$10,000 / 0.833 = $12,000
Thursday
Friday
Track progressPredict total costAvoid nasty surprises
EVM scales
EVM can be done any time for a single task or an entire project
Thanks@MarkStanto