Assigning work is relatively easy, but how do you ensure that the deadlines will be met, the project will come in under budget, or that the quality level will be acceptable to the stakeholders? Fortunately, project management fundamentals contain techniques which are used to track and control the project. Earned Value Analysis Any discussion of project control … [Read more...]
What is the Schedule Performance Index?
In project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. The Schedule Performance Index, usually abbreviated as SPI, is one of the fundamental outputs of Earned Value Management. It tells the project manager how far ahead or behind the project is at the point of … [Read more...]
What is Schedule Variance?
In project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. Schedule Variance, usually abbreviated as SV, is one of the fundamental outputs of Earned Value Management. It tells the project manager how far ahead or behind the project is at the point of analysis (usually … [Read more...]
The Earned Value Formulas
Earned Value is a method of calculating project status. It does this from two perspectives: Time (schedule) and Cost. After applying the earned value method the project manager will know whether the project is: behind or ahead of schedule. over or under budget. In this post we will outline each formula in the earned value management system. The first three … [Read more...]
An Earned Value Example for Small Projects
Earned value analysis is a project management method used to calculate the project status from two perspectives: Schedule. Is the project ahead of or behind schedule? Cost. Is the project over or under budget? Let's say you are the project manager for the renovation of 3 hotel rooms. The tasks are as follows: Preparation. Jan. 1 - Jan. 10, … [Read more...]
The 8 Steps to Earned Value Analysis
It's amazing how many projects do not know their true status until near the end, when there is little that can be done to ensure they finish on time or budget. The proper time to rigorously track project status is at the beginning, not at the end. This is when project risk can be managed and changes made to get it back on track. Earned value analysis is the … [Read more...]
The 4 Parts of Project Control
Putting out fires is rarely a good project management strategy, even though most project managers have so much experience with it that they could take it up as a second career. Suffice it to say that project control is where the project manager earns their wages. Project control is the tasks required to ensure the project is completed on time, on budget, … [Read more...]
Guide to Project Change Management
Change is the only constant thing in life. - Heraclitus, Greek Philosopher Human nature is such that, if you ask me to do something for you, you expect me to have a plan and, following your approval of that plan, to adhere to it. That's why project management involves the development of a project management plan, which includes the budget, schedule, stakeholder … [Read more...]
What is a Project Baseline?
A baseline is defined as a time-based standard against which performance is measured. A project baseline is a time-based, progressive plan as opposed to one, single target value. Projects will often have a single, target value, but it is important to know if the project is in good health at any given intermediate project control point. The baseline … [Read more...]
Budget at Completion (Earned Value Analysis)
The Budget at Completion (BAC) is a value used in earned value management, a division of project management. It represents the original project budget. For example, if a project has a budget of $10,000, BAC = $10,000 Therefore, there is no other formula or calculation for this metric. The BAC is often compared to the Estimate at Completion (EAC) … [Read more...]