Earned Value Management Technique | PMP Certification

This session covers an important topic on "Earned Value Management Technique." In this video we would learn the concept of earned value management technique and we would also cover the other calculation part associated with project cost management knowledge area such as the concept of depreciation, net present value, lifecycle costing etc. The objective of earned value management technique is to create a common method of evaluating the project's performance in terms of scope, cost and time which is applicable for all types of projects. Now just imagine if our project is related to a building construction. How would you represent scope? It would be in terms of completion of the basement, construction of the ground floor and so on. If our project is related to software development, how would you represent scope? You would say the design phase of the project is complete. We are in to the coding. So the measurement of the project scope is varies from project to project. Then how can we have a project scope of evaluating the project performance. In earned value management technique we represent the scope in terms of a dollar value proportionate to that part of the budget. This way we can compare total value of that was suppose to be completed against the total value of work that has been completed in reality and find out the project performance. Let's look at earned value management technique in detail. It uses three dimensions: planned value, earned value and actual work. Planned value is the authorized budget assigned to the work to be accomplished for an activity or work breakdown structure component. The total of the planned value is sometimes referred to as the performance measurement baseline . The total planned value for the project is also known as budget at completion. Earned value is the value of the work expressed in terms of the approved budget assigned to that work for an activity or work breakdown structure component. So if the plan value represents the work suppose to be completed, earned value represents the value of the work that has been completed in reality.
All our sessions are lead by Senior Project Managers with 12+ years of experience. Our aim is to ensure that you pass your PMP Certification with flying colors. For more information please visit www.whizlabs.com

Видео Earned Value Management Technique | PMP Certification канала Whizlabs