PMP Exam: Earned Value Management - Part 1, Basic Concepts

[konkarmilla]

this explanation was more in context of cost but i get very much confused when we talk about earned manhours. as once i had to update a excel sheet which was calculating earned manhours of a particular work performed with planned manhours

[saeednemati]

Thanks



[insomniacgrace]

Thanks for this video clip. Indeed, the title says it all. Informative and so comprehensive.

[baduh8guy4life]

question. if we are still looking at the work done end of day Tuesday to calc the PV shouldnt the calc be:

50+0.8(100)+(0.5*200)*(0.2)

The 0.5 for activity C is to account for the fact that end of day tuesday the most we could have completed would be half of the $200 total of activity C. SO knowing that the maximum amount we could have completed is $100 we take 20% of that? Is my thinking correct here?

[SirGanttalot]

Thanks for the question. I think you are asking about EV rather than PV? If so, then EV is the value of work actually accomplished (BCWP). For activity C, 20% of the TOTAL task has been accomplished by end of day Tuesday, rather than 20% of Tuesday's work. By that point, 50% of the TOTAL task should have been done (so the PV for activity C is $100, but only 20% has acually been done so the EV is $40. I hope this helps.

[baduh8guy4life]

@SirGanttalot I got ya. thx

[den33775]

One thing I don't get - the PV, EV, AC calcs all make sense, but at this point, things look bad, because of the AC value of $200 against the EV of $170. But if task A is 100% complete and cost $60; task B is 80% complete and cost $110 (remaining 20% would be $27.50, making total cost of task B $137.50); and task C is 20% complete at $30 ($150 new planned value), saving us $50. So, A is $10 extra; B is 37.50 extra; C is $50 saving = 10+37.50-50 = $2.50 saving on original PV. Good news!?

[SirGanttalot]

Thanks for the question. A couple of things to factor in to your perceptive observations. When simplifying to 4 tasks as I have done in this video, some of the formulas for forecasting (see the part 3 video in this series) don't work as as well as in larger projects. We are also behind schedule, so in the real world we would keep staff on for longer than planned, costing more. Lastly, we haven't started task D yet. Two of the earlier tasks were late and/or overbudget, so D may be as well.

[manasefs]

Sorry...$170 is right...got carried away with waelwow arguement on 'B' activity...but 'A' is $50 at 100%. and NOT $100...so you were right...appologies.

I wonder which software would you recommend to learn and practice in my career as a construction engineer: Primavera or MS Project...I'm new on all of this and wonder which one shall I follow on the long run....looking forward 4 a quick reply....once again thans SIR for all ur videos...keep'em coming.

[SirGanttalot]

Primavera has a strong foothold in the construction field, but many organizations are moving to MS Project. As an engineer, unless you become the main scheduler for a team, you will likely update information in schedules created for you or by others. For your direct use, you could always have MS Project on your own desktop. Your scheduler can import schedules you create into Primvera. Basic familiarity with both products would help. Basic concepts are the same, but menu commands differ.

[manasefs]

at 5:44 SIR mentioned that the EV for activty 'B' is $80....not sure how did you come up with $50 (gong back to waelwow argument)...so I agree its not 170 its 220.

At any rate, the video itself, its Author, and presentation are excellent and very informative in a smooth streamline approach. Thanks.

[waelwow]

The calculation of the Earnd value is wronge, it is not $ 170.

The correct value is

100+0.8 (100)+0.2(200)=220 

[SirGanttalot]

Thanks, but the EV calculation is correct and your own example makes one mistake. The EV of Activity A is $50, not $100 per your own calculation. So instead of your calculation for cumulative end-day 2 EV of 100+0.8 (100)+0.2(200)=220, the correct figure is 50+0.8 (100)+0.2(200)=170. Hope this helps.

[lloooollr]

Great presentation !!! i start learning EVMS at school and this presentation helps me alot, Thank you

[iluvgh3tt0princ3ss]

Can someone tell me if Value Management and Earned Value Management are the same thing? If not, what's the difference?

[SirGanttalot]

Value Management is an overall and wide-ranging management approach which aims to create a balance between the needs and desires of project stakeholders, and the cost (resources needed) to meet those needs and wants. It is a value-based management style embracing many techniques and disciplines. Earned Value Management is a focused technique which measures and forecasts progress against the three triple constraints, Time, Cost and Scope. Hope this helps.

[PMPMRP]

...this was great. Thank you so much for this. I read the PMBOK and was close to banging my head on the wall...but this is so clear!

[createsf]

Really good job. I received my PMP in 2001, but am always looking for ways to reinforce learning. I just finished a grueling 2 week eSeminar from PMI which required usage of all of these concepts. Wished I'd had this refresher before hand!

[SirGanttalot]

Thanks....this knowledge is definitely volatile data that's for sure! Bring in Sir Ganttalot for you next seminar. It may still be grueling but it would be entertaining as well! Best regards,

[drokoton]

Thank you for sharing your experience and knowledge with us. You are doing a great job :)

[abu3li1973]

u r gr8 ,

im preparing to pm exam , n iam listenin to ur tips

its usefull n helping me alot to understand alot of things in pmbok

i recommend also if u can put some sinarios

or case questions / answers

that would be very helpfull to whom gonna take the exam

again , thx alot

[realpearlgarden]

great ............ what is ur name sir,,,,,,,,,

[SirGanttalot]

Thanks for the feedback. Click on the SirGanttalot blue name towards the top right of the page. That will take you to the Sir Ganttalot home page where there is more information about me and my company. Best regards.

[platriani]

awesome - don't go to wikipedia - it'll eat yourbrain

[azamora2005]

nice video! THANK YOU!

[Seek284]

Sir "G", thanks for the clear, and concise info. It's a great help with EVM and certainly one I will refer to in future!