Earned Value Management is a tool in project management that uses a combination of formulas, including the earned value PMP formula, to help you clearly and objectively see where your project is headed compared to where it’s supposed to be. It’s important to understand the principles in Earned Value Management (EVM) and how to use it in your projects.
You can download our free PDF of formulas at:
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Formulas & Variables Presented in the Video:
Earned Value is an estimate that compares the current level of work completed on a project against the original budget.
Planned Value is the budgeted cost for the work scheduled to be done, which shows how much of the project budget should have been spent at any given point in time.
Schedule Variance is used to identify if a project is on track, behind, or ahead of schedule.
Cost Variance, also known as budget variance, is a way for us to check the budgets performance by calculating the difference between earned value and actual cost.
Actual Cost is the actual amount of money spent so far.
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Timestamps for Video:
00:00 Introduction to Earned Value Management
00:20 Earned Value Management Definition
00:42 Earned Value Definition
00:58 Planned Value Definition
01:20 Earned Value Formula Example
02:16 Earned Value vs Planned Value
02:38 Schedule Variance Definition
03:04 Schedule Variance Formula Example
03:20 Schedule Variance % Formula Example
03:53 Cost Variance Definition
04:26 Cost Variance Formula Example
04:54 Cost Variance % Formula Example
05:22 Importance of Earned Value Management in Projects
05:52 Outro
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