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Introduction to the Earned Value Concept

  • Problems with comparing plan versus actual to ascertain performance.
  • Earned Value - An essential parameter.

The Brick Wall

  • An illustrative example of Earned Value methods.

Introduction to Earned Value Management Systems (EVMS)

  • The essential features of a disciplined Earned Value Management System.
  • Objectives and policies of customer-implemented requirements.
  • What are the benefits to the customer?

Top Management Use of Earned Value Data

  • Understand the flow of EVMS data and other reports
  • Be exposed to graphics techniques used to track cost performance on major acquisitions.

Organization and Work Definition

  • WBS defined.
  • Purposes of a WBS.
  • Developing a WBS for standard and non-standard systems.
  • Trade-off assessments on determining the number of levels in the WBS.
  • Negotiating the WBS with the customer.
  • Purpose and importance of defining WBS elements.

Responsibility Assignment

  • Matrixing the organization structure with the WBS.
  • Essential features of a Control Account.
  • Guidance in the identification of Control Account levels and contents.
  • Why the Control Account is the driving factor in system cost.
  • Integrating management subsystems around the WBS and Control Accounts.

Planning, Scheduling and Budgeting

  • Planning, Scheduling and Budgeting - A three-stage iterative process.
  • Proper design of a scheduling system.
  • Horizontal and Vertical Integration.
  • Critical Path.
  • Integrating cost and schedule.
  • Management philosophies on Management Reserve and Undistributed Budgets.

Measuring Accomplishment

  • Description of Work Measurement classifications.
  • Work Packages defined.
  • Discrete Work Measurement techniques.
  • Milestone Characteristics.
  • Rolling Wave - How far in the future must you plan?
  • Summary Planning Packages and their use.

Integrated Baseline Review (IBR)

  • What to expect during the IBR process.


  • Why Actual Cost for Work Performed (ACWP) is different from "Actual Costs".
  • Structuring an effective cost control code for accumulating Actual Costs of Work Performed.
  • Common problems and solutions to accumulating material costs for performance measurement.
  • "Enlightened" customer requirements on material costs.
  • How to identify meaningful material variances.


  • Identifying cost and schedule variances.
  • Methods of portraying variances.

Variance Analysis

  • Interpreting Cost and Schedule Variance.
  • What constitutes a significant variance?
  • Writing useful variance analysis reports.
  • Comparing past and future efficiency factors.

Estimates, Indices and Forecasts

  • Developing Estimates at Completion (EAC) and Estimated Completion Dates (ECD)
  • Use of Performance Indices


  • What type of financial reports are required and what is their purpose?
  • How to prepare and interpret the various reports.
  • Differences in reporting requirements.

Revisions and Baseline Maintenance

  • The importance of Baseline Management.
  • Obtaining a balance between a firm baseline and the requirement for internal replanning flexibility.
  • How the baseline is affected by various changes.
  • Over Target Baseline (OTB) and / or Over Target Schedule (OTS).

System Development

  • How to implement an EVM System.
  • Cost factors to develop and operate an EVM System.
  • Common problems and solutions.

The Validation Process

  • What to expect during the Validation Process.


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