As 4817-2006 Project Performance Measurement Using Earned Value
Uploaded by
SAI Global - APACAs 4817-2006 Project Performance Measurement Using Earned Value
Uploaded by
SAI Global - APACThis is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
AS 4817—2006
using Earned Value
Australian Standard™
Project performance measurement
AS 4817—2006
This Australian Standard was prepared by Committee OB-014, Earned Value
Management. It was approved on behalf of the Council of Standards Australia on
23 November 2005.
This Standard was published on 6 January 2006.
The following are represented on Committee OB-014:
Australian Cost Engineering Society
Australian Health Industry Inc
Australian Institute of Project Management
Australian Performance Management Association
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
Australian Institute of Quantity Surveyors
Department of Defence (Australia)
Project Management Institute
Keeping Standards up-to-date
Standards are living documents which reflect progress in science, technology and
systems. To maintain their currency, all Standards are periodically reviewed, and
new editions are published. Between editions, amendments may be issued.
Standards may also be withdrawn. It is important that readers assure themselves
they are using a current Standard, which should include any amendments which
may have been published since the Standard was purchased.
Detailed information about Standards can be found by visiting the Standards Web
Shop at www.standards.com.au and looking up the relevant Standard in the on-line
catalogue.
Alternatively, the printed Catalogue provides information current at 1 January each
year, and the monthly magazine, The Global Standard, has a full listing of revisions
and amendments published each month.
Australian StandardsTM and other products and services developed by Standards
Australia are published and distributed under contract by SAI Global, which
operates the Standards Web Shop.
We also welcome suggestions for improvement in our Standards, and especially
encourage readers to notify us immediately of any apparent inaccuracies or
ambiguities. Contact us via email at [email protected], or write to the Chief
Executive, Standards Australia, GPO Box 476, Sydney, NSW 2001.
This Standard was issued in draft form for comment as DR 04562.
AS 4817—2006
Australian Standard™
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
Project performance measurement
using Earned Value
Originated as AS 4817—2003.
Second edition 2006.
COPYRIGHT
© Standards Australia
All rights are reserved. No part of this work may be reproduced or copied in any form or by
any means, electronic or mechanical, including photocopying, without the written
permission of the publisher.
Published by Standards Australia, GPO Box 476, Sydney, NSW 2001, Australia
ISBN 0 7337 7079 7
AS 4817—2006 ii
Preface
This Standard was prepared by the Standards Australia Committee
OB-014, Earned Value Performance Measurement (EVPM) to
supersede AS 4817—2003.
The objectives of this Standard are:
• To define the essential elements of the EVPM method.
• To be used as a measurement tool to determine whether the
EVPM method has been implemented.
• To provide a basis for EVPM implementation for all industries and
sizes of Projects.
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
• To clearly communicate the benefits of the EVPM method.
• To be fundamentally compatible with any existing Australian or
International Standards.
• To be relevant to Project Managers (PMs) and executive
management in organizations that manage by Projects.
The terminology used in this Standard has been chosen to be
acceptable across a wide range of disciplines. Terms used in the
Standard that are in common use have been adopted from the
PMBOK Guide 2000 Edition v1.2, ANSI/PMI 99-001-2000 (PMBOK).
If the PMBOK did not provide an adequate definition of a term then
the definition from ANSI/EIA-748-A-1998, Earned Value Management
Systems was used. In some cases slight alterations have been made
to the definitions to better reflect the Australian context. If neither the
PMBOK nor ANSI/EIA-748 provided a satisfactory definition for a
given term then the Committee created an applicable definition.
If terms have a common-use abbreviation then this abbreviation has
been used, subsequent to its first use, throughout the remainder of
the Standard.
The terms ‘normative’ and ‘informative’ have been used to distinguish
between prescriptive and non-prescriptive parts in the Standard
respectively. The ‘normative’ parts are the sub-sections in Section 3
titled ‘Requirements’ and Section 1.3 titled ‘Definitions’ where terms
used in those requirements are defined. Parts of the Standard that
are ‘informative’ include those marked ‘informative’ and titled
‘Guidance’. Where a term from the ‘Definitions’ section is used in an
‘informative’ part of the Standard it is not intended that the term
impart ‘normativity’ to that part.
Terms that are defined in Section 1.3 are set in SMALL CAPITALS
throughout this Standard.
Standards Australia www.standards.com.au
iii AS 4817—2006
Contents
Page
Foreword ........................................................................................ v
1 Introduction
1.1 Scope ............................................................................1
1.2 Application .....................................................................1
1.3 Definitions (Normative) ..................................................1
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
1.4 What is earned value? ...................................................5
1.5 Benefits of earned value performance measurement ....8
2 Earned value performance measurement
2.1 Basic actions .................................................................9
2.2 Basic concepts ..............................................................9
2.3 What about a more complex project? ..........................12
3 The earned value performance measurement process
3.1 STEP 1: Decompose the project scope .......................18
3.2 STEP 2: Assign responsibility ......................................18
3.3 STEP 3: Schedule the work.........................................19
3.4 STEP 4: Develop time-phased budget.........................20
3.5 STEP 5: Assign objective measures of performance ...21
3.6 STEP 6: Set the performance measurement baseline .22
3.7 STEP 7: Authorize and perform the work.....................23
3.8 STEP 8: Accumulate and report performance data......24
3.9 STEP 9: Analyse project performance data .................25
3.10 STEP 10: Take management action ............................26
3.11 STEP 11: Maintain the baseline...................................26
APPENDICES
A Acroynms ....................................................................28
B Measuring and analysing performance ........................29
C Common charts and their interpretation.......................35
AS 4817—2006 iv
Foreword
Earned Value Performance Measurement (EVPM) is a method for
measuring and reporting project performance, and forecasting future
performance based on past performance. The EVPM method
measures performance of the time and cost aspects of a project and
enables effective project management. The EVPM method provides:
• means for measuring project performance and status;
• means for measuring progress against a BASELINE (plan);
• forecasts of future performance based on past performance; and
• metrics for comparison of project performance across an
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
organization and between organizations.
EVPM assists managers to:
• report cost and schedule performance using standardised
techniques;
• analyse variances between the plan and actual progress;
• control changes to the BASELINE; and
• forecast completion costs and finish dates.
1 AS 4817—2006
1 Introduction
1.1 Scope
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
This Standard establishes requirements and gives guidance for the
measurement and reporting of cost and schedule performance of
projects and programs using the EVPM method.
1.2 Application
This Standard can be applied to the measurement and reporting of
the cost and schedule performance of projects and programs. It can
be applied to any situation where a specified deliverable (product,
service, output, result) is to be produced by a specified date and with
finite resources.
The method can be used for the performance measurement of single
projects, for parts of projects (including contracted and sub-
contracted parts), for programs consisting of multiple projects, and
for organizations that manage by projects.
In the multi-project environment, EVPM provides metrics for
summary level reporting throughout the organization. The metrics
can be rolled up by output, by program, by organizational unit,
organizational objective, key performance indicator, or other
organization-specific summarisation required for effective
management reporting.
1.3 Definitions (Normative)
For the purposes of this Standard, the definitions below apply.
1.3.1 Activity
An element of work performed during the course of a project. An
ACTIVITY normally has an expected duration, an expected cost, and
expected resource requirements. ACTIVITIES can be subdivided into
tasks.
www.standards.com.au Standards Australia
This is a free preview. Purchase the entire publication at the link below:
AS 4817-2006, Project performance measurement
using Earned Value
This is a free 7 page sample. Access the full version at http://infostore.saiglobal.com.
Looking for additional Standards? Visit SAI Global Infostore
Subscribe to our Free Newsletters about Australian Standards® in Legislation; ISO, IEC, BSI and more
Do you need to Manage Standards Collections Online?
Learn about LexConnect, All Jurisdictions, Standards referenced in Australian legislation
Do you want to know when a Standard has changed?
Want to become an SAI Global Standards Sales Affiliate?
Learn about other SAI Global Services:
LOGICOM Military Parts and Supplier Database
Metals Infobase Database of Metal Grades, Standards and Manufacturers
Materials Infobase Database of Materials, Standards and Suppliers
Database of European Law, CELEX and Court Decisions
