Money Management Course is based on text and video learning materials by Academy Europe.

The text provides a concise overview of Earned Value Management (EVM), a project management technique used to monitor project progress and predict future performance. EVM integrates scope, schedule, and cost, objectively tracking work completion and answering stakeholder questions regarding project status. Key components include Planned Value, Actual Cost, and Earned Value, which are regularly tracked to assess past, present, and future project performance. Originally a US government financial tool, EVM has evolved into a widely adopted project management methodology. Effective EVM use, combined with good planning, helps mitigate cost and schedule overruns.

Podcast Link: https://www.youtube.com/watch?v=I_FUNPnQs84

1. Introduction:

This briefing document provides an overview of Earned Value Management (EVM), a project management technique, as described by the provided text. The document aims to summarise the key concepts, purpose, and evolution of EVM.

2. Core Purpose and Function of EVM:

The core purpose of EVM is to provide an objective and systematic method for tracking project performance. It achieves this by:

• Tracking Project Progress: EVM is used “to track the progress and status of a project and forecast its likely future performance.” It monitors the physical accomplishment of work rather than simply tracking expenditures.
• Integration of Key Project Elements: EVM integrates the three crucial project aspects: scope, schedule, and cost.
• Stakeholder Communication: EVM provides answers to stakeholders regarding a project’s performance, offering transparency and accountability.
• Performance Analysis and Prediction: EVM is not only used to show past and current project performance but also, using statistical techniques, to “predict the future performance of the project.”
• Problem Mitigation: The text notes that “Good planning coupled with effective use of EVM will reduce a lot of issues arising out of schedule and cost overruns.” This highlights its proactive approach to project management.

3. Key Components of EVM:

EVM relies on three fundamental elements:

• Planned Value (PV): The budgeted cost of work scheduled to be accomplished.
• Actual Cost (AC): The actual cost incurred for the work completed.
• Earned Value (EV): The value of the work actually completed at a given point in time.

The source emphasizes that “All the three elements are captured on a regular basis as of a reporting date.”

4. Historical Context and Evolution:

EVM has a significant history and has evolved from a specialist tool to a mainstream project management method. Key stages in this evolution are:

• 1960s: Emerged as “a financial analysis specialty in United States Government programs.”
• Late 1980s and early 1990s: EVM transformed into “a project management methodology to be understood and used by managers and executives, not just EVM specialists.” This shift demonstrates the increased awareness of the importance of these techniques.
• Present Day: EVM has now “become an essential part of every project tracking,” solidifying its status as a core project management technique.

5. Summary and Key Takeaways:

• EVM provides an objective and integrated method for project performance tracking.
• It combines scope, schedule and cost data to give a holistic view of a project’s status.
• EVM is not just a reactive tool, but it can be used to make future predictions using statistical techniques.
• The use of EVM, along with good planning, will reduce problems arising from cost and schedule overruns.
• EVM has transitioned from a specialist area to a vital element of modern project management.

6. Conclusion:

The information from the provided text clearly establishes Earned Value Management as a crucial project management technique. By combining objective tracking of progress with performance prediction, EVM allows for better control over project costs, timelines, and overall delivery, thereby increasing the chances of project success.

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