Part 3 of 3: In this final section, the lesson covers advanced topics in Earned Value Analysis, such as the To-Complete Performance Index (TCPI) and Variance at Completion (VAC). It explains how these metrics help project managers determine the level of cost efficiency required to complete the project on budget and provides practical strategies for managing projects that are behind schedule or over budget. The lesson concludes with takeaways on how to interpret EVA metrics and apply them to real-world projects.
Disclaimer
Please note that this video is part of our older, historic collection of The PM PrepCast 6 course, originally designed to help prepare for the PMP exam before 2021. While no longer recommended for current PMP exam preparation, the concepts discussed in this video remain relevant today and are valuable for project managers seeking to strengthen their skills.
Timestamped Show Notes
0:09 - Introduction
Overview of Earned Value Analysis (EVA) Part 3
Topics to be covered: Estimate to Complete (ETC), To Complete Performance Index (TCPI), and miscellaneous formulas.
0:50 - Stakeholder Communication
Importance of not overwhelming stakeholders with equations.
Focus on answering key questions: "How much is left to spend?" and "How does this compare to the original budget?"
2:00 - Estimate to Complete (ETC)
Defining ETC: Estimate at Completion (EAC) minus Actual Cost (AC).
Emphasizing the difference between ETC and EAC.
3:03 - Variance at Completion (VAC)
VAC: Budget at Completion (BAC) minus EAC.
Interpreting VAC: Positive VAC = Under budget, Zero VAC = On budget, Negative VAC = Over budget.
3:39 - To Complete Performance Index (TCPI)
Introducing TCPI, a measure of cost performance required for remaining work.
Example of a family road trip to illustrate TCPI.
6:00 - Calculating TCPI
Example calculation: Driving speed adjustment based on remaining time and distance.
Relating the example to project management, showing how TCPI helps balance risks and constraints.
9:00 - Application to Housing Project
Applying TCPI to a housing project scenario.
Explanation of how to calculate TCPI based on actual cost, earned value, and budget at completion.
11:02 - Considering Risks and Options
Adjusting project plans due to delays or cost overruns.
Estimating the new EAC when facing issues like supply shortages.
13:03 - Interpreting TCPI Results
High TCPI values signal the need for corrective actions.
Lower TCPI values indicate the project can proceed as planned, but still require monitoring.
13:25 - Percentage Complete vs. Percentage Spent
Differentiating between the two: Percentage complete is earned value divided by BAC, while percentage spent is actual cost divided by BAC.
Explaining how these metrics can inform stakeholders about project progress.
14:30 - Agile and Earned Value
Discussing the application of EVA in Agile project management.
Mention of burn-down and burn-up charts in relation to planned value curves.
16:00 - Who is Responsible for Tracking EVM?
Overview of who tracks Earned Value Management (EVM) in different organizations.
The importance of knowing how to calculate an EAC and when to do so.
17:20 - Review Question
A review question on the formula for EAC, emphasizing learning from cumulative CPI.
Free Exam Simulator
Sign up for a free trial of the PM PrepCast Exam Simulator at www.pm-exam-sim...
PMP Exam Prep Resources
PMP Exam Prep Anywhere and Anytime - The PM PrepCast: www.pm-prepcas...
The Best PMP Exam Simulator - The PrepCast PMP Exam Simulator: www.pm-exam-si...
Ask a PMP question in our Forum: www.pm-prepcas...
PDU Resources
Earn PDUs the easy way with the PDU Podcast: www.pducast.com
Sign up for the PDU Insider: www.pdu-inside...
Enhance your career with AI Skills: www.pm-prepcas...
Stay connected with us
Facebook: / prepcast
LinkedIn: / project-management-pre...
Instagram: / corneliusficht
Pinterest: / pmexamtips
X/Twitter: x.com/corneliu...
🔔 Subscribe and hit the notification bell for more tips just like this: www.youtube.co...
#projectmanagement #pmpexam #pmpexamtips
22 окт 2024
