Earned Value Management Formulas in 5 Minutes!

so I'm going to show you some tricks to know in evey formulas let's go to the whiteboard and do a little bit of brainstorming here and see how to actually come out with our own value metrics so there are 4 own value metrics that we need to really understand for problems on the PMP these metrics are the derivative metrics and they are CPI cost performance index spi scheduled performance index cost variance and the schedule variance now there's a very simple trick to understand what this is all about and the trick is identify which variables are involved with these metrics for the cost performance index we start the formula with E V and value so evey we start this formula with evey we start this formula with evey and we start this formula with evey do you know why because earn value get a close-up of own values mug shot if you don't mind this is earned value and value always gets upset for a particular reason value I look at earned value as a character wearing a crown and with a toothy grin earned value likes to be put first and I tell my students earned value is king it's White's wearing the crown now that's a visual you won't forget in a hurry right value is king so you're gonna remember that ridiculous visual I just gave you remember earned value needs to come first okay you also need to remember basic maths if we're talking about an index cost performance index if you're talking about an index what do we do we divide so we're going to put divided here and divide here because this is an index so it's that cost performance index if you're talking about a variance what do we do we subtract variants subtract subtract that's easy if you're talking about cost remember we've got these three basic metrics AC e V and PV basic metrics in evie if you're talking about cost we're going to take the actual cost and put that in here talking about cost actual cost if you're talking about schedule planned value the schedule is the plan the plan is to schedule I tell people when you think about plan PV think about schedule so we're going to take that number we're going to take that or they take that metric and we're going to put it where we have the s for schedule and that is how you come up with your four derivative metrics let's take a closer look at the screen and see how all of it looks by the time we are done we have something that looks like this spi CPI SVN cv and that's how you get those formulas add value is king

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Keywords: pmp exam, capm exam, praizion, praizion media, pmp cd, pmp dvd training, pmp coach, pmp certification, pmi, project management, project management institute, time management, risk management, cost management, leadership, training, mentor, pmbok guide, pmbok

Id: Gy1P784tKG8

Length: 3min 51sec (231 seconds)

Published: Tue Dec 16 2014