TABLE OF CONTENTS

CHAPTER 1 - INTRODUCTION

1.1    Purpose of this Practice Standard

1.2    Relationship to the PMBOK® 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 MANAGEMENT—SECOND 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

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