A short story about Earned Value Management
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This document is a short story about earned value management. It describes a project with a budget of $10,000 and duration of 5 days at a rate of $2,000 per day. It tracks the project's progress and calculates performance and forecasts at different completion percentages to predict the total cost and avoid cost overruns. The document concludes that earned value management can be done for any single task or entire project to track progress and prevent surprises.
A short story about Earned Value Management
- 1. A short story about Earned Value Management by Mark
- 2. Bob
- 3. Duration: 5 days Rate: $2,000 per day Budget: $10,000
- 4. Monday
- 5. Tuesday
- 6. Wednesday
- 7. Thursday
- 8. Complete: 50%
- 9. Friday
- 10. Saturday
- 11. Sunday
- 12. How could this be avoided?
- 13. Monday
- 14. Complete: 10% Earned value: $1,000 Actual cost: $2,000
- 15. Performance = Earned Value / Cost $1,000 / $2,000 = 0.5 Forecast = Budget / Performance $10,000 / 0.5 = $20,000
- 16. Tuesday
- 17. Wednesday
- 18. Complete: 50% Earned value: $5,000 Actual cost: $6,000
- 19. Performance = Earned Value / Cost $5,000 / $6,000 = 0.833 Forecast = Budget / Performance $10,000 / 0.833 = $12,000
- 20. Thursday
- 21. Friday
- 22. Track progress Predict total cost Avoid nasty surprises
- 23. EVM scales
- 24. EVM can be done any time for a single task or an entire project