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    Earned Value Management for the PMP Certification Exam
    Earned Value Management for the PMP Certification Exam
    Earned Value Management for the PMP Certification Exam
    Ebook148 pages1 hour

    Earned Value Management for the PMP Certification Exam

    By Mohammad Usmani

    4.5/5

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    Read preview

    About this ebook

    This eBook is written for professionals who want to increase their skills in earned value management (EVM) as well as those who are preparing for the PMP exam. This eBook explains all earned value management formulas mentioned in the 5th edition of the PMBOK Guide with simple examples so you can understand the formulas and apply the concepts when solving questions.

    If you are struggling to understand earned value concepts and find the mathematical questions for the PMP exam difficult to solve, this eBook is for you. All formula-based questions are explained with every possible detail, and practice questions are given to test your understanding.

    This eBook is aligned with the latest fifth edition of the PMBOK Guide. It covers all earned value management formulas for the PMP exam, and has more than 75 examples and practice questions.

    This eBook will help you understand earned value calculations, elevate your confidence in solving earned value questions, help you select the correct formula based on the situation, and help you analyze the logical interpretation of answers.

    LanguageEnglish
    PublisherMohammad Usmani
    Release dateOct 23, 2015
    ISBN9781310903182
    Earned Value Management for the PMP Certification Exam

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    Reviews for Earned Value Management for the PMP Certification Exam

    4.5/5

    15 ratings3 reviews

    What our readers think

    Readers find this title to be an excellent guide for preparing for exams and improving project management skills. The book provides clear and concise explanations of EVM formulas, with step-by-step explanations and practice questions to reinforce learning. It is recommended for anyone looking to achieve PMP certification or enhance their project management abilities.

    What did you think?

    Tap to rate

    Review must be at least 10 words

    • 5/5
      Great ebook to learn EVM formulas given different cases, easy to follow equations results with step by step explanation.
      I'll recommend this, not only for achieving PMP certification, but to anyone that is in search to improve their Project Manager skills.
    • 5/5
      Excellent guide to help prepare for the formulas on the exam. The practice questions helped me to reinforce what is taught and helped me prepare.
    • 5/5
      Clear and Short! Great to easily understand the EVM. Thanks!

    Book preview

    Earned Value Management for the PMP Certification Exam - Mohammad Usmani

    Earned Value Management for the PMP Certification Exam

    All rights reserved. The content available in this eBook is copyrighted to PM Study Circle 2019. No part of this eBook may be reproduced or transmitted in any form or by any means without the express permission from the author.

    https://PMStudyCircle.com

    [email protected]

    PMP, PMBOK Guide, and PMI are registered trademarks of Project Management Institute (PMI), USA.

    Published by Mohammad Fahad Usmani, PMP, PMI-RMP at Smashwords.

    Copyright © 2019 by PM Study Circle

    Version: 2.0

    Table of Contents

    Introduction

    Earned Value Management

    Elements of Earned Value Management

    Schedule Variance and Cost Variance

    Schedule Performance Index and Cost Performance Index

    Estimate at Completion

    Estimate to Complete

    To Complete Performance Index

    Introduction

    In the PMP exam you are going to see a lot of math-based questions, and a large part of these questions will be from Earned Value Management (EVM).

    Earned Value Management is a very important concept and it provides you with very helpful information about a project’s status and progress. Therefore, even if you are not preparing for the PMP exam but are involved in project management, you should understand the concepts of Earned Value Management.

    This eBook covers all earned value concepts and formulas mentioned in the PMBOK Guide, and gives you enough examples and practice question to understand the concepts and calculations better.

    I cannot guarantee that after reading this eBook you will answer all Earned Value Management questions correctly in the exam; however, I have full faith that this eBook will give you enough confidence to complete any EVM questions in the PMP exam.

    Please keep in mind is that you have to study this eBook in the sequence it has been written. Do not skip chapters or start from the middle and move forward and back. The concepts build upon previous work, and skipping forward may leave you confused or with the wrong impressions.

    I hope you find this book useful for your studies.

    I welcome your comments and feedback on this book. You can send me an email if you need any assistance or clarification; I’ll always be available for you.

    Thank you.

    Regards,

    M Fahad Usmani (PMP, PMI-RMP)

    [email protected]

    Earned Value Management

    The objective of project management is to help you successfully complete a project. This means that any project should be completed on time and provide you a positive return on your investment.

    To complete a project successfully you will need to know the status and progress of the project. Moreover, you should also be able to predict the future performance of the project.

    So how are you going to get this information?

    You will get all this information with the help of Earned Value Management (EVM).

    This tool helps you in finding, and analyzing, the following:

    (a) The status of the project

    (b) The progress of the project

    (c) How you are progressing through the project

    The earned value management also helps you in forecasting, such as how fast, or slow, you may need to go to complete the project on time.

    This tool gives you information about the cost spent on the project and the value earned from the completed work.

    Before earned value management, project managers had only two data sources on hand - planned expenditure and actual expenditure.

    This information helped them compare what the planned expenditure was and how much had been spent, but did not include the work completed. Project managers were not able to relate the work completed with the value earned from the project, as such, it was difficult for them to find the cost performance of the project.

    This is why earned value management was developed, to help project managers overcome the shortcomings of the traditional methods.

    Earned value management is sometimes also known as earned value analysis (EVA), which became mainstream in the1960s after the U.S. Air Force made it mandatory to use in their programs. Since 2005, it has been a part of general federal project risk management.

    Earned value management has many benefits over traditional project management methods, most notably EVM method focuses on actual accomplishments while traditional methods emphasize only planned and actual expenditure.

    Earned value management also helps you find schedule and cost performance, which allows you to analyze various parameters.

    Earned value management has three basic elements:

    (1) Planned Value (PV)

    (2) Earned Value (EV)

    (3) Actual Cost (AC)

    With the help of these elements you can find the following variances and performance indexes:

    (a) Schedule Variance (SV)

    (b) Cost Variance (CV)

    (c) Schedule Performance Index (SPI)

    (d) Cost Performance Index (CPI)

    This also helps you forecast the following:

    (a) Estimate at Completion (EAC)

    (b) Estimate to Complete (ETC)

    (c) Variance at Completion (VAC)

    (d) To Complete Performance Index (TCPI)

    It allows you to not only analyze the current project performance, but forecast future performance.

    Benefits of Earned Value Management

    Earned value management offers you many benefits. It gives you a better insight into your project and helps you identify problems in the very early stages of the project. Clients also get a better preview of the project, granting greater confidence about the project’s success.

    The following are a few benefits of earned value management:

    (a) It helps you in planning

    (b) It relates a time phased budget to the project tasks

    (c) It shows the status and progress of the project

    (d) It improves communication and project visibility

    (e) It helps you in forecasting

    Key Points:

    (a) Earned value management helps you analyze the project status, progress, and in forecasting.

    (b)

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