Earned Value Management for Projects

Earned value management is often introduced as a set of formulas, and then abandoned because the numbers do not match reality. The usual causes lie upstream: a work breakdown structure that does not match how work is contracted, budgets not linked to the schedule, progress claimed by opinion rather than agreed rules, actual costs recorded late or against the wrong codes, and baselines changed without control. Earned value then produces precise figures that nobody trusts.

This programme treats earned value as a management system, not only a calculation. It moves through five stages: planning the scope and structure, building the performance measurement baseline, measuring progress and collecting actuals, analysing performance and forecasting the outturn, and managing change, risk and reporting so that the numbers lead to decisions.

Built on recognised practice. The programme references ISO 21508 on earned value management in project, programme and portfolio management, the PMI Standard for Earned Value Management, the EIA-748 guidelines for earned value management systems, and the earned schedule method. Participants learn how to apply these principles on projects of different sizes, not only on large defence or government contracts.

Decisions this programme improves. How to structure control accounts and progress rules; whether reported progress is credible; which estimate at completion method to trust; when variances justify corrective action; when a baseline should be changed and how; how to link earned value to risk and contingency; and what sponsors need to see to act early.

How it is delivered. Twenty hours across five sessions, built around one running case: a capital project that moves from baseline through several reporting periods, a scope change and a recovery decision. Participants build the baseline, calculate performance indices, forecast the outturn and prepare a monthly performance report using spreadsheet models.

In-house option. For organisations, the programme can be tailored to your own project controls procedures, cost codes, scheduling tools and reporting templates, and delivered to project, planning, cost and finance teams together.

Who Should Attend

Project managers responsible for delivering projects to budget and schedule

Project controls staff: project control managers, planners, schedulers and cost engineers

PMO professionals: PMO managers and analysts who set reporting standards

Finance professionals responsible for project budgets and forecasting

Owners' representatives and consultants who review contractor performance reports

Objectives

Explain how earned value management integrates scope, schedule, cost and risk

Structure a project into a WBS, organisational breakdown and control accounts suitable for earned value

Build a time-phased performance measurement baseline linked to the schedule

Select objective progress measurement methods for different types of work

Calculate and interpret PV, EV, AC, SV, CV, SPI and CPI

Forecast estimate at completion and estimate to complete using several methods and justify the choice

Apply earned schedule to assess time performance and forecast completion dates

Manage baseline changes, management reserve and contingency with proper control

Produce earned value reports and variance analyses that support management decisions

Course Outline

Why Earned Value: Integrating Scope, Time and Cost

Limits of traditional budget versus actual reporting
Principles of earned value management and where it fits in project control
ISO 21508, the PMI standard and EIA-748 guidelines: common ground
Scaling earned value for small, medium and large projects
Roles: project manager, control account manager, planner and cost engineer

Building the Performance Measurement Baseline

Work breakdown structure and organisational breakdown structure
Control accounts and work packages
Resource-loaded and cost-loaded schedules
Time-phased budgets and the S-curve
Contingency, management reserve and undistributed budget
Baseline review and approval

Measuring Progress and Recording Actuals

Progress measurement methods: milestones, percent complete, units, level of effort and apportioned effort
Rules of credit and preventing front-loading of progress
Collecting and accruing actual costs
Aligning cost, schedule and progress cut-off dates
Earned value on contracted and subcontracted work
Data quality checks before reporting

Analysing Performance and Forecasting the Outturn

Schedule and cost variances and performance indices
Estimate at completion methods and when each is appropriate
To-complete performance index and realism checks
Earned schedule and forecast completion dates
Trend analysis, thresholds and early warning indicators
Linking earned value with risk analysis and contingency drawdown

Change Control, Reporting and Decisions

Baseline change control and re-baselining rules
Variance analysis reports and corrective action plans
Dashboards and reports for sponsors and senior management
Earned value in agile and hybrid project environments
Project controls software, integrated data and emerging analytics tools
Action plan: introducing or improving earned value in your organisation

Competencies

Performance measurement baseline development

Work breakdown structure and control account design

Objective progress measurement

Earned value analysis and performance indices

Estimate at completion forecasting

Earned schedule analysis

Baseline change control and reserve management

Integration of earned value and risk

Earned value reporting for sponsors and senior management

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