This course is a result of 25 years of consulting project management experience, developing and using various earned value management models on multiple projects. This course will start with a discussion of the basics of the Earned Value Methodology. We will define the Planned Value, Actual Cost and Earned Value as well as provide the formulas to calculate them:

• PV = Planned Quantity X Planned Cost

• AC = Actual Quantity X Actual Cost

• EV = Actual Quantity X Planned Cost

We will then focus on the Schedule Variance and Cost Variance by examining several very simple examples based on an imaginary project where a company has to manufacture ten offices in ten days on a budget of $1,000. We will examine the following scenarios:

• Behind the schedule but on budget

• On schedule but way over budget

• Both late and over budget

• Ahead of schedule and under budget

Then, having gained the basic understanding of the Earned Value Method, we will shift to a more complicated, real-life example where a construction company has to dig a trench by extracting 1,000 cubic meters of sand in a course of ten days on a budget of $5,000.

We will conclude this course with an exercise suggesting filling out the second part of the EVM table from the “Digging a Trench” project.