Podcast
Questions and Answers
What is the primary purpose of developing the network diagram in project management?
What is the primary purpose of developing the network diagram in project management?
Which step involves determining the percentage of work completed to calculate Earned Value (EV)?
Which step involves determining the percentage of work completed to calculate Earned Value (EV)?
What is captured in Step 6 of the project management process?
What is captured in Step 6 of the project management process?
Which step focuses on defining responsibilities within the project organization?
Which step focuses on defining responsibilities within the project organization?
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What does the baseline budget represent in project management?
What does the baseline budget represent in project management?
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At which step does a project manager establish budgets for work packages and cost accounts?
At which step does a project manager establish budgets for work packages and cost accounts?
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What is the main focus of Step 3 in the project management process?
What is the main focus of Step 3 in the project management process?
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The baseline budget developed in Step 5 is based on which of the following?
The baseline budget developed in Step 5 is based on which of the following?
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What is primarily gathered during Step 6 of the project management process?
What is primarily gathered during Step 6 of the project management process?
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In which step does the project manager compute Earned Values (EVs)?
In which step does the project manager compute Earned Values (EVs)?
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Which step involves generating a report that reflects different aspects of project performance?
Which step involves generating a report that reflects different aspects of project performance?
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Which of the following steps involves creating a structure for categorizing the project work and establishing associated budgets?
Which of the following steps involves creating a structure for categorizing the project work and establishing associated budgets?
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What is the primary activity performed in Step 7 of the project management process?
What is the primary activity performed in Step 7 of the project management process?
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Which step is responsible for defining the project's scope?
Which step is responsible for defining the project's scope?
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In which step is the baseline budget created by time-phasing the values of work packages?
In which step is the baseline budget created by time-phasing the values of work packages?
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During which step is the organizational breakdown structure completed?
During which step is the organizational breakdown structure completed?
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What is the focus of Step 8 in the project management process?
What is the focus of Step 8 in the project management process?
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Study Notes
EVM Steps
- EVM requires a series of steps to be performed by the project manager.
- The first step is to define the project scope, outlining the project's objectives and boundaries.
- The second step involves creating a work breakdown structure (WBS) and establishing budgets for specific work packages and cost accounts.
- The third step focuses on creating an organizational breakdown structure (OBS) and delegating responsibility to different organizational units.
- The fourth step involves developing a network diagram which maps out the sequence of work packages over time.
- The fifth step involves creating a baseline budget by allocating costs to work packages over time. This baseline budget represents Planned Value (PV).
- Step six focuses on capturing Actual Costs (AC), which are gathered from those working on the different work packages.
- The seventh step involves calculating Earned Value (EV) by determining the percentage of work completed for each activity and multiplying it with the total planned value.
- The final step involves generating a status report, reflecting various aspects of project performance.
Earned Value Management (EVM) Steps
- EVM is a project management method that uses a series of steps to assess project performance.
- The project manager is responsible for conducting these steps.
- EVM requires defining the project scope, creating a work breakdown structure, and establishing budgets for work packages.
- An organizational breakdown structure allocates responsibilities, while a network diagram timelines the work packages.
- A baseline budget (PV) is developed by time-phasing the value of work packages.
- Actual costs (AC) are captured from those working on the project.
- Earned value (EV) is calculated by determining the percentage of completed work and multiplying it by the total planned value of each activity.
- A final report is generated based on project performance data.
Earned Value Management (EVM) Steps
- EVM is a project management technique that uses earned value to track project progress and performance.
- Step 1: Define Project Scope - Establish clear goals, deliverables, and project boundaries to ensure a shared understanding.
- Step 2: Work Breakdown Structure (WBS) and Budget - Decompose the project into manageable tasks, assign budgets to each work package, and assign cost accounts.
- Step 3: Organizational Breakdown Structure (OBS) - Determine the organizational structure and assign responsibility to teams for specific tasks.
- Step 4: Network Diagram - Develop a visual representation of the project schedule, showing dependencies between activities and their timeframes.
- Step 5: Baseline Budget - Establish a baseline budget for the project, typically based on time-phased Rand values of work packages.
- Step 6: Capture Actual Costs (AC) - Gather accurate information on actual expenditures for each work package.
- Step 7: Calculate Earned Value (EV) - Determine the percentage of work completed and multiply it by the total planned value for each activity.
- Step 8: Project Status Report - Generate regular reports providing insights into project performance using EVM data.
Project Management Steps
- Step 1: Define Project Scope: Clearly define the project's objectives, deliverables, and boundaries.
- Step 2: Develop Work Breakdown Structure: Breakdown the project into manageable work packages and establish budgets for each.
- Step 3: Define Organizational Breakdown Structure: Outline the project's organizational structure and assign responsibilities.
- Step 4: Create Network Diagram: Visualize the project's sequence of activities with time-phased scheduling.
- Step 5: Develop Baseline Budget: Determine the total project cost by time-phasing work packages. This serves as the planned value (PV).
- Step 6: Track Actual Costs (AC): Gather data on actual expenses incurred during the project.
- Step 7: Calculate Earned Value (EV): Determine the percentage of work completed and multiply it by the total value of each activity.
- Step 8: Generate Project Status Report: Provide a comprehensive assessment of project performance, covering various aspects like budget, schedule, and resources.
Project Management Steps
- Define project scope: This ensures a clear understanding of what the project entails.
- Create work breakdown structure (WBS): The WBS breaks down the project into manageable tasks with associated budgets.
- Develop organizational breakdown structure: Determines how the project team is structured and assigns responsibilities.
- Create network diagram: This visualizes project tasks and their dependencies, helping schedule project activities.
- Establish baseline budget: This is the initial budget developed by time-phasing the Rand value (cost) of work packages. It acts as a benchmark for project control (planned value).
- Track actual costs (AC): This involves gathering information on the actual expenses incurred for each work package.
- Calculate earned value (EV): EV is determined by multiplying the percentage of work completed with the total planned value for each activity.
- Generate project status report: Summarizes project progress and performance against the baseline budget, highlighting key metrics like planned value (PV), actual cost (AC) and earned value (EV).
Project Management Steps
- Project managers define the project scope to establish the project's boundaries and goals.
- They create a work breakdown structure, breaking down the project into manageable tasks, and allocate budgets to these tasks.
- Project managers establish an organizational breakdown structure, assigning responsibilities to different teams or individuals within the organization.
- A network diagram is developed to visualize the project timeline and dependencies between tasks.
- A baseline budget is created by allocating costs to each task over time, forming the Planned Value (PV) for cost control.
- Actual Costs (AC) are tracked to monitor the actual expenditure on the project.
- Earned Value (EV) is calculated by multiplying the percentage of work completed with the total value of each task.
- A final status report is generated to summarize project performance.
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Description
This quiz covers the essential steps of Earned Value Management (EVM) as practiced by project managers. You will learn about defining project scope, creating work breakdown structures, developing budget baselines, and more. Test your knowledge of how to effectively manage and evaluate project performance using EVM techniques.
