Professional Development Seminar Series - PMP Certification Training Courses and Exam ... · 2018-05-24 · ... PMBOK and the PMI Registered Education Provider logo are registered
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3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Earned Value Management. A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
Earned Value (EV). The measure of work performed expressed in terms of the budget authorized for that work.
Earned Value is also known as Budgeted Cost of Work Performed (BCWP).
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
As per the PMBOK® Guide 5th Edition, “Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.”
• Plan Cost Management
• Estimate Costs
• Determine Budget
• Control Cost
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Page 193.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
A systematic series of activities directed towards causing an end result such that one or more inputs will be acted upon to create one or more outputs.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-10, Page 215.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-11, Page 217.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Plan Cost Management—The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project activities.
Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Control Costs—The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-2, Page 195.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-4, Page 200.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Cost estimates may include contingency reserves (sometimes called contingency allowances) to account for cost uncertainty.
Contingency reserves are the budget within the cost baseline that is allocated for identified risks, which are accepted and for which contingent or mitigating responses are developed.
Contingency reserves are often viewed as the part of the budget intended to address the “known-unknowns” that can affect a project.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Estimates may also be produced for the amount of management reserve to be funded for the project.
Management reserves are an amount of the project budget withheld for management control purposes and are reserved for unforeseen work that is within scope of the project.
Management reserves are intended to address the “unknown unknowns” that can affect a project.
The management reserve is not included in the cost baseline but is part of the overall project budget and funding requirements.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-6, Page 208.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
The cost baseline is the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures and is used as a basis for comparison to actual results.
It is developed as a summation of the approved budgets for the different schedule activities.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-8, Page 213.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Since the cost estimates that make up the cost baseline are directly tied to the schedule activities, this enables a time-phased view of the cost baseline, which is typically displayed in the form of an S-curve
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-9, Page 214.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Control Costs is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 7-10, Page 215.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Planned value (PV) is the authorized budget assigned to scheduled work.
It is the authorized budget planned for the work to be accomplished for an activity or work breakdown structure component, not including management reserve.
This budget is allocated by phase over the life of the project, but at a given moment, planned value defines the physical work that should have been accomplished.
The total of the PV is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC).
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Actual cost (AC) is the realized cost incurred for the work performed on an activity during a specific time period.
It is the total cost incurred in accomplishing the work that the EV measured.
The AC needs to correspond in definition to what was budgeted in the PV and measured in the EV (e.g., direct hours only, direct costs only, or all costs including indirect costs).
The AC will have no upper limit; whatever is spent to achieve the EV will be measured.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget associated with the authorized work that has been completed.
The EV being measured needs to be related to the PMB, and the EV measured cannot be greater than the authorized PV budget for a component.
The EV is often used to calculate the percent complete of a project.
Progress measurement criteria should be established for each WBS component to measure work in progress.
Project managers monitor EV, both incrementally to determine current status and cumulatively to determine the long-term performance trends.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Progress measurement technique measures the percent complete which will assist in calculating the earned value. The budget is the budgeted cost of the measured component which could be a work package, control account, or the project.
3FOLD Education Centre 3/18/2017
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
This method is applicable to tasks that lack readily definable intermediate milestones or those for which the effort/time required is very difficult to estimate.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
This method is applicable to tasks that involve a long period of time or that are continuous during the life of a project, and which are estimated and budgeted on bulk allocations of dollars and work hours rather than on the basis of production.
𝑨𝒄𝒕𝒖𝒂𝒍 𝒄𝒐𝒔𝒕 𝒐𝒓𝑾𝒐𝒓𝒌𝒉𝒐𝒖𝒓𝒔 𝒕𝒐 𝒅𝒂𝒕𝒆
𝑭𝒐𝒓𝒆𝒄𝒂𝒔𝒕 𝒂𝒕 𝑪𝒐𝒎𝒑𝒍𝒆𝒕𝒊𝒐𝒏x 100
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Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
This method is applicable when the task being controlled involves a long period of time and is composed of two or more overlapping subtasks, each with a different unit of work measurement.
Earned Value Management System
PMI, PMP, PMBOK and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.