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by Project Management Institute
Practice Standard for Earned Value Management, 2nd Edition
Cover Page
Title Page
Copyright Page
Table of Contents
Chapter 1 - Introduction
1.1 Purpose of this Practice Standard
1.2 Relationship to the PMBOKĀ® Guide
1.3 Assumptions
1.4 Structure of the Practice Standard
Chapter 2 - Earned Value Project Management Overview
2.1 Introduction
2.2 EVM and the Project Management Process
2.3 Basic EVM Terminology
2.4 Basic EVM Concepts
2.5 Considerations
Chapter 3 - Organize Project
3.1 Introduction
3.2 Inputs
3.2.1 Project Charter
3.2.2 Stakeholder Management Strategy
3.2.3 Requirements Documentation
3.3 Description
3.3.1 Product Analysis
3.3.2 Alternatives Analysis
3.3.3 Decomposition
3.4 Outputs
3.4.1 Scope Management Plan
3.4.2 Project Scope Statement
3.4.3 Work Breakdown Structure
3.4.4 Work Breakdown Structure Dictionary
3.4.5 Scope Baseline
3.5 Considerations
3.5.1 Constructed with Technical Expertise
3.6 Summary
Chapter 4 - Assign Responsibility
4.1 Introduction
4.2 Inputs
4.2.1 Scope Baseline
4.3 Description
4.3.1 Create Organizational Structure
4.3.2 Integrate WBS and Organizational Structure
4.4 Outputs
4.4.1 Organizational Breakdown Structure
4.4.2 Responsibility Assignment Matrix
4.5 Considerations
4.5.1 Level of Detail
4.5.2 Maintenance
4.6 Summary
Chapter 5 - Develop Schedule
5.1 Introduction
5.2 Inputs
5.2.1 Scope Baseline
5.2.2 Resource Breakdown Structure
5.3 Description
5.3.1 Schedule Tool
5.3.2 Schedule Structure
5.3.3 Schedule and Budget Relationship
5.4 Outputs
5.4.1 Integrated Master Schedule
5.5 Considerations
5.5.1 Schedule Evolution
5.6 Summary
Chapter 6 - Establish Budget
6.1 Introduction
6.2 Inputs
6.2.1 Project Charter
6.2.2 Responsibility Assignment Matrix
6.2.3 Schedule Baseline
6.3 Description
6.3.1 Establish a Budget Structure
6.3.2 Develop the Cost Estimate
6.3.3 Authorize the Work
6.3.4 Update the Project Budget Log
6.4 Outputs
6.4.1 Project Budget
6.4.2 Project Funding Requirements
6.4.3 Project Budget Log
6.4.4 Control Account Plans
6.5 Considerations
6.5.1 Budget Versus Funding
6.6 Summary
Chapter 7 - Determine Measurement Methods
7.1 Introduction
7.2 Inputs
7.2.1 Requirements Documentation
7.2.2 Statement of Work
7.2.3 Scope Baseline
7.2.4 Integrated Master Schedule
7.2.5 Project Budget
7.3 Description
7.3.1 Discrete Effort
.1 Fixed Formula
.2 Weighted Milestone
.3 Percent Complete
.4 Physical Measurement
7.3.2 Apportioned Effort
7.3.3 Level of Effort (LOE)
7.4 Outputs
7.4.1 Performance Measurement Methods
7.4.2 Control Account Plan Updates
7.5 Considerations
7.5.1 Select the Method
7.5.2 Rules of Measurement
7.5.3 Measurement of Procurements
7.6 Summary
Chapter 8 - Establish Performance Measurement Baseline
8.1 Introduction
8.2 Inputs
8.2.1 Scope Baseline
8.2.2 Integrated Master Schedule
8.2.3 Project Budget
8.2.4 Risk Register
.1 Agreed-Upon Response Strategies
.2 Contingency Reserves
.3 Contract Decisions
8.3 Description
8.3.1 Project Management Plan Integration
8.3.2 The Project Budget Base (PBB)
8.3.3 Management Reserve
8.3.4 Performance Measurement Baseline
.1 Undistributed Budget
.2 Summary Level Planning Budgets
.3 Control Account Budgets
8.3.5 Rolling Wave Planning
8.4 Outputs
8.4.1 Performance Measurement Baseline
8.4.2 Project Funding Requirements Updates
8.4.3 Project Document Updates
8.4.4 Contract Decisions (Revised)
8.4.5 Formal Acceptance
8.5 Considerations
8.5.1 Method for Scheduling Level of Effort Work
8.5.2 Method for Allocating Indirect Costs
8.5.3 Impact of Different Types of Resources and Costs
8.5.4 Method for Incorporating Contingency Reserves into the PMB
8.5.6 Integration of Subcontractor Baselines
8.6 Bicycle Project Example
8.7 Summary
Chapter 9 - Analyze Project Performance
9.1 Introduction
9.2 Inputs
9.2.1 Project Management Plan
9.2.2 Work Performance Information
.1 Planned Value
.2 Earned Value
.3 Actual Cost
.4 Budget at Completion
9.3 Description
9.3.1 Performance Analysis
.1 Schedule Analysis
.2 Cost Analysis
9.3.2 Forecasting
.1 Estimate to Complete
.2 Estimate at Completion
.3 Variance at Completion
.4 To-Complete Performance Index
9.3.3 Percentage Comparisons
9.3.4 Trend Analysis
9.4 Outputs
9.4.1 Performance Measurement Methods
9.4.2 Funding Forecasts and Trends
9.4.3 Corrective and Preventive Actions
9.5 Considerations
9.5.1 Management by Exception
9.5.2 Communication with Earned Value Data
.1 Tables
.2 Bar Charts
.3 Curves
9.6 The Bicycle Case Study
9.6.1 Analyzing the Data
9.6.2 Graphical Analysis of the Data
.1 Graphical Display of PV, EV, and AC
.2 Graphical Display of at Completion Data and Forecasts
.3 Graphical Display Project Variances
.4 Graphical Display of Project Indices
9.6.3 Summary of Data and Graphical Analysis
9.6.4 Management by Exception and Variance Analysis
9.7 Summary
Chapter 10 - Maintain Performance Measurement Baseline
10.1 Introduction
10.2 Inputs
10.2.1 Project Management Plan
10.2.2 Performance Measurement Baseline
10.2.3 Change Requests
10.2.4 Integrated Change Control System
10.3 Description
10.3.1 Change Control Board Meetings
10.3.2 Scope Change Analysis
10.3.3 Cost and Schedule Rebaselining
10.4 Outputs
10.4.1 Performance Measurement Baseline Updates
10.4.2 Project Management Plan Updates
10.4.3 Change Request Status Updates
10.5 Considerations
10.6 Threaded Example for Bicycle Project
10.7 Summary
References
Appendix A - Guidelines for a Project Management Institute Practice Standard
Appendix B - Evolution of PMI'S Practice Standard for EVM
Appendix C - Contributors and Reviewers of the Practice Standard for Earned Value ManagementāSecond Edition
Appendix D - Schedule Analysis using EVM Data
Appendix E - Integrating Earned Value Management with Risk Management
Appendix F - Deployment of EVM Systems
Appendix G - Pitfalls and Recommendations
Glossary
Index
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Project Management Institute
PRACTICE STANDARD FOR EARNED VALUE MANAGEMENT
Second Edition
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