PMP Exam: Earned Value Management - Part 2, Variances and Index Values

Sir Ganttalot helps you prepare for the PMP exam by explaining Earned Value Management. This is a three part lesson. Part 1 covers basic concepts, i.e. how to derive PV (Planned Value), EV (Earned Value) and AC Actual Cost. (These terms are also known as BCWS, BCWP and ACWP respectively.) Part 2 shows how to apply these items to calculate variances (SV - Schedule Variance, CV - Cost Variance, SPI - Schedule Performance Index, CPI - Cost Performance Index). Part 3 explains how Earned Value Management is used to forecast project performance by calculating EAC - Estimate at Completion, ETC - Estimate to Complete, VAC - Variance at Completion, and TCPI - To Complete Performance Index.

Category:

Education

Tags:

• PMP
• Exam
• Preparation
• Sir
• Ganttalot
• SirGanttalot
• Earned
• Value
• Management
• PMBOK
• BCWS
• BCWP
• ACWP
• SV
• CV
• CPI
• SPI
• EAC
• ETC
• VAC
• TCPI

[issamworld]

What is the difference between planned value (PV) and budget at completion (BAC) ?

PL

AC

EV

EAC

VAC

ETC

[SirGanttalot]

Thanks for asking. The PV of the ENTIRE project is the same as BAC. PV means the Budgeted Cost of Work Scheduled. So the PV/BCWS of ALL the work in the project is the Budget at Completion. For anthing less than the full project, the PV for that section is going to be less than the full project budget, specifically it is the Budegeted Cost of the Work Scheduled to be completed during that specific section of the project. Hope this helps.

[issamworld]

@SirGanttalot WOW your superb i got it !!

how about OBS vs RBS ?

[SirGanttalot]

OBS is Organizational Breakdown Structure. Think of it as the Org Chart, like the family tree of the organization. It is usually functional role-based, with the boss at the top. The RBS, Resource Breakdown Structure CAN be exactly the same as the OBS. More often it is a breakdown by SKILL, e.g. you would have a box for "Developers", under that boxes for "Database Developers", "Application Developers", etc. Separately, RBS can be Risk Breakdown Structure, showing risk categories.

[shegirlsub]

I agree with one of your previous posters! If only you had written the BMBOK! Very easy to understand. Thank you very much! Studying for my PMP.

[SirGanttalot]

Thanks for the kind words! Good luck with your studies!

[insomniacgrace]

thanks for these great information shared. Imba!

[prangghosh]

Good evening Sir Gantallot ! It seems that I am going OK with my preparations of PMP but I want to feel more confident with the PMP questions. According to your advice where in the innet I can find the test questions most likely with the real exam ? thanks a lot ....

[damientoth]

After 2 years as Junior PM using ad-hoc methodologies, I am finally exposed to PMBOK. Although for the last few days I have struggled, SirGanttalot helped me overcome this topic with his 3 part series on EVM.

PMBOK does a poor job at covering this topic and it wants to force you to read the Practice Standard for Earned Value Management, which is just more text. These videos help people like me who need visual study aids.

Thank you!

[smi100]

toooooooooooooooooooo gooood!!! waiting for more :)

[wbillacox]

Sir Gantallot, This video is very easy to understand. Earned value is not a monster of seven heads, as the PMP says in my country (Brazil). Thanks for help me in my PMP Exam.