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Earned Value Project Management, Second Edition

Book Description

"Earned value" is a project management technique that is emerging as a valuable tool in the management of all projects, including and, in particular, software projects. In its most simple form, earned value equates to fundamental project management.

This is not a new book, but rather it is an updated book. Authors Quentin Fleming and Joel Koppelman have made some important additions. In many cases, there will be no changes to a given section. But in other sections, the authors have made substantial revisions to what they had described in the first edition.

Fleming and Koppelman’s goal remains the same with this update: describe earned value project management in its most fundamental form, for application to all projects, of any size or complexity. Writing in an easy-to-read, friendly, and humorous style characteristic of the best teachers, Fleming and Koppelman have identified the minimum requirements that they feel are necessary to use earned value as a simple tool for project managers. They have also witnessed the use of simple earned value on software projects, and find it particularly exciting. Realistically, a Cost Performance Index (CPI) is the same whether the project is a multibillion-dollar high-technology project, or a simple one hundred thousand-dollar software project. A CPI is a CPI … period. It is a solid metric that reflects the health of the project.

In every chapter, Fleming and Koppelman stick with using simple stories to define their central concept. Their project examples range from peeling potatoes to building a house. Examples are in round numbers, and most formulas get no more complicated than one number divided by another.

Earned Value Project Management—Second Edition may be the best-written, most easily understood project management book on the market today. Project managers will welcome this fresh translation of jargon into ordinary English. The authors have mastered a unique "early-warning" signal of impending cost problems in time for the project manager to react.

Table of Contents

  1. Copyright
  2. List of Figures
  3. Introduction
  4. 1. Earned Value Project Management ... An Introduction
    1. Planning for Earned Value Project Management
    2. Management’s Approval
    3. Welcome to the World of Project Management
    4. The First Quarterly Project Status Review
    5. The Value of Earned Value
  5. 2. Earned Value Project Management ... An Overview
    1. The Earned Value Concept in a Nutshell
      1. Traditional Project Cost and Funding Management
      2. Traditional Cost Management versus Earned Value
      3. Earned Value Cost and Schedule Performance Indices
      4. Using the CPI and SPI to Statistically Forecast the Final Project Results
    2. In Summary
  6. 3. The Genesis and Evolution of Earned Value
    1. Origin of Earned Value
    2. Evolution of the Earned Value Concept
      1. Phase 0—The Factory Floor: In the Late 1800s
      2. Phase 1—PERT/Cost: 1962–65
      3. Phase 2—C/SCSC: 1967 to 1996
      4. Phase 3—EVM (ANSI/EIA 748): 1996 to Present
    3. In Summary
  7. 4. The Earned Value Body of Knowledge
    1. The Legacy of Earned Value As a Part of the C/SCSC
  8. 5. Scope the Project
    1. Understanding the Job (What’s In ... What’s Out)
    2. A Work Breakdown Structure to Scope the Project
    3. Some Specific Examples of WBSs
    4. Make-or-Buy Choices ... A Critical Part of Scope Definition
    5. The WBS and Earned Value
    6. Projects Should Use WBSs
    7. In Summary
  9. 6. Plan and Schedule the Project
    1. Understanding the Project
    2. Planning the Project
    3. Scheduling the Project
    4. Recent Government Initiatives Requiring CPM
    5. Earned Value Requires a Scheduling System
    6. In Summary
  10. 7. Estimate and Budget Project Resources to Form Control Account Plans (CAPs)
    1. Integrating the Project Scope of Work with Costs and Schedule
    2. Earned Value CAPs
    3. Multifunctional Team CAPs
    4. Estimates versus Budgets ... and Management Reserves
    5. In Summary
  11. 8. Establish the Earned Value Project Baseline
    1. Introduction
    2. Methods Used to Plan and Measure Earned Value
    3. Control Account Plans (CAPs)
    4. CAPs in the Private Sector
      1. Case # 1: CAPs Used on a Development Project for a High-Technology Vehicle
      2. Case #2: CAPs for an Architectural Design Project
      3. Case #3: CAPs for a Software Project
    5. The Performance Measurement Baseline (PMB)
    6. Maintaining the Baseline: Managing Changes in Scope
    7. In Summary
  12. 9. Monitoring Performance against the Baseline
    1. Earned Value Focuses on “Exceptions” to the Plan
    2. Performance Takes Place within CAPs
    3. Displays for Management
    4. Special Issue: The Meaning of Earned Value Schedule Variances
    5. Special Issue: Accounting for Materials and Subcontracts
      1. Actual Costs May Need to be Reduced to Match Earned Value Measurement
      2. Actual Costs May Need to Be Increased to Match Earned Value Measurement
  13. 10. Forecasting Final Cost and Schedule Results
    1. Three Factors Will Determine the Final Project Results
      1. Factor #1: The Quality of the Project’s Baseline Plan
      2. Factor #2: Actual Performance against the Approved Baseline Plan
      3. Factor #3: Management’s Determination to Influence the Final Results
    2. Methodology to Statistically Forecast Final Cost and Schedule Results
    3. Special Issue: Management Reserve or Contingency Reserve
    4. The “Mathematical” or “Overrun to Date” EAC
    5. The “Cumulative CPI” EAC
    6. The “Cumulative CPI times SPI” EAC
    7. The To Complete (the Remaining Work) Performance Index
    8. Predicting the Project’s Time Duration
    9. In Summary
  14. 11. Reengineering the Earned Value Process for the Private Sector
    1. Conversion of Earned Value for Broad Use in the Private Sector
    2. In Summary
  15. 12. Earned Value Project Management: A Fiduciary Duty
    1. Management of Organizations by Projects
    2. Federal Requirements for EVM
    3. In Summary
  16. I. The Earned Value Management System Criteria
    1. Group 1—Organization Criteria (five)
      1. EVM Criterion # 1
      2. EVM Criterion # 2
      3. EVM Criterion # 3
      4. EVM Criterion # 4
      5. EVM Criterion # 5
    2. Group 2—Planning, Scheduling, and Budgeting Criteria (ten)
      1. EVM Criterion # 6
      2. EVM Criterion # 7
      3. EVM Criterion # 8
      4. EVM Criterion # 9
      5. EVM Criterion # 10
      6. EVM Criterion # 11
      7. EVM Criterion # 12
      8. EVM Criterion # 13
      9. EVM Criterion # 14
      10. EVM Criterion # 15
    3. Group 3—Accounting Criteria (six)
      1. EVM Criterion # 16
      2. EVM Criterion # 17
      3. EVM Criterion # 18
      4. EVM Criterion # 19
      5. EVM Criterion # 20
      6. EVM Criterion # 21
    4. Group 4—Analysis Criteria (six)
      1. EVM Criterion # 22
      2. EVM Criterion # 23
      3. EVM Criterion # 24
      4. EVM Criterion # 25
      5. EVM Criterion # 26
      6. EVM Criterion # 27
    5. Group 5—Revisions Criteria (five)
      1. EVM Criterion # 28
      2. EVM Criterion # 29
      3. EVM Criterion # 30
      4. EVM Criterion # 31
      5. EVM Criterion # 32
  17. II. A Comparison of the Original Thirty-Five C/SCSC with the Industry Thirty-Two EVMS Criteria
  18. References
    1. Chapter 1
    2. Chapter 3
    3. Chapter 4
    4. Chapter 5
    5. Chapter 6
    6. Chapter 7
    7. Chapter 8
    8. Chapter 9
    9. Chapter 10
    10. Chapter 12
    11. Appendix I
    12. Appendix II
  19. Glossary of Earned Value Project Management Terms
  20. Upgrade Your Project Management Knowledge with First-Class Publications from PMI
    1. The Project Sponsor Guide
    2. Don’t Park Your Brain Outside: A Practical Guide to Improving Shareholder Value with Smart Management
    3. The EnterPrize Organization: Organizing Software Projects for Accountability and Success
    4. A Framework for Project Management
    5. The PMI Project Management Fact Book
    6. Project Management Software Survey
    7. The Juggler’s Guide to Managing Multiple Projects
    8. Recipes for Project Success
    9. Tools and Tips for today’s Project Manager
    10. The Future of Project Management
    11. New Resources for PMP Candidates
    12. PMP Resource Package
    13. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)
    14. Interactive PMBOK® Guide
    15. Managing Projects Step-by-Step™
    16. PMBOK® Q&A
    17. PMI Proceedings Library CD-Rom
    18. PMI Publications Library CD-Rom
    19. Also Available From PMI