EVP - Certification Guide

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Information/knowledge one needs for getting EVP certified.

Text of EVP - Certification Guide

  • Earned Value Professional (EVP) Certification Study Guide

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  • Earned Value Professional (EVP) Certification Study Guide

    First Edition, Revised Copyright 2008

    By AACE International 209 Prairie Avenue, Suite 100

    Morgantown, WV 26501-5934 USA Phone : +1.304.2968444

    Fax: +1.304.2915728 Email : info@aacei.org Web : www.aacei.org

    Printed in the United States of America

    ISBN: 978-1-885517-69-6

  • A Special Publication Of

    AACE International The Association for the Advancement of Cost Engineering

    Earned Value Professional (EVP) Certification Study Guide

    First Edition, Revised

    A continuing project of the AACE International Education Board

  • Acknowledgments The 2007-2008 AACE International Education Board is grateful to the AACE International members who have assisted in the development of this EVP Certification Study Guide, including:

    Chris A. Boyd CCE (Co-editor) Mark T. Chen, PE CCE Prof. John (Jeff) Hannon Harry Jarnagan,PE CCE

    Dr. Sean Regan, PhD CCE CEP (Co-editor)

    2007/2008 Education Board Members: Harry Jarnagan, PE CCE (Chair)

    Mahendra (Pal) Bhatia Chris A. Boyd, CCE

    Mark T. Chen, PE CCE Audrey M. Clark, CCC John O. Evans, III PSP

    Clive Francis, CCC Prof. John (Jeff) Hannon

    Prof. Dr. Mark Hastak, PhD CCE Donald F. McDonald, Jr. PE CCE PSP

    Dr. Sean Regan, PhD CCE CEP Barrett Richards, CCC PSP

    Peter W. Griesmyer

    The assistance and support of the AACE International Headquarters (HQ) staff members are also greatly appreciated:

    James Baxter, Executive Director Marvin Gelhausen, Managing Editor

    Noah Kinderknecht, Graphic Designer Robin Donley, IT/IM/Graphics Specialist

    Charla Miller, Staff Director-Education and Administration Dr. Randy Rapp, D.Mgt PE CCE, Subject Matter Expert for Assoc. Board Support

    Sandra Willard, Administrator, Certification and Education

  • Contents I. INTRODUCTION TO EVP CERTIFICATION STUDY GUIDE......................................................... 1 Origin of Earned Value..................................................................................................................................... 6 EVP Certification Examination Structure........................................................................................................ 9

    CHAPTER 1 ORGANIZATION..................................................................................................................9 1.1 Work Breakdown Structure ................................................................................................................ 11 1.2 Organizational Breakdown Structure................................................................................................. 15 1.3 Work Authorization ............................................................................................................................ 19 1.4 Responsibility Assignment Matrix ...................................................................................................... 23

    CHAPTER 2 - PLANNING SCHEDULING AND BUDGETING ......................................................... 27 2.1 Critical Path Schedule ....................................................................................................................... 29 2.2 Milestones and Deliverables............................................................................................................... 35 2.3 Performance Goals ............................................................................................................................. 41 2.4 Performance Management Baseline ................................................................................................. 45 2.5 Risk Assessment and Mitigation ......................................................................................................... 49 2.6 Control Accounts................................................................................................................................ 53 2.7 Work Package ..................................................................................................................................... 57 2.8 Planning Package ............................................................................................................................... 61 2.9 Cost Elements..................................................................................................................................... 65 2.10 Contingency ....................................................................................................................................... 69 2.11 Management Reserve ......................................................................................................................... 73 2.12 Undistributed Budget ......................................................................................................................... 77 2.13 Over-Target Budgets and OverTarget Schedule .............................................................................. 81 2.14 Contracting......................................................................................................................................... 85 2.15 Integrated Baseline Reviews ............................................................................................................... 89 2.16 Earned Value Methods....................................................................................................................... 93

    CHAPTER 3 - ACCOUNT CONSIDERATION ........................................................................................99 3.1 System Identification........................................................................................................................ 101 3.2 Direct Costs ...................................................................................................................................... 105 3.3 Control Accounts.............................................................................................................................. 109 3.4 Indirect Cost ..................................................................................................................................... 113 3.5 Unit Costs ......................................................................................................................................... 117 3.6 Performance Measurement Baseline Authorization........................................................................ 121

    CHAPTER 4 - ANALYSIS AND MANAGEMENT REPORTS............................................................... 125 4.1 Critical Path Analysis........................................................................................................................ 127 4.2 Progress Reporting ............................................................................................................................ 131 4.3 Variance Reporting........................................................................................................................... 135 4.4 Customer Reporting and Submittals................................................................................................ 139 4.5 Earned Value Mitigation.................................................................................................................. 143 4.6 Analysis ............................................................................................................................................. 147 4.7 Estimate-at-Completion and Estimate-to-Complete........................................................................ 151 4.8 Subcontract Management ................................................................................................................ 155 4.9 Retainage .......................................................................................................................................... 159

    CHAPTER 5 - REVISION AND DATA MAINTENANCE..................................................................... 163 5.1 Change Control................................................................................................................................ 165 5.2 Reconciliation................................................................................................................................... 169 5.3 Document Control ........................................................................................................................... 173 5.4 Performance Measurement Baseline Authorization........................................................................ 177 5.5 Retroactive Change .......................................................................................................................... 181

  • PREFACE The AACE International Earned Value Professional Certification Study Guide is being developed to accomplish two purposes similar to that of the AACE International CCC/CCE Certification Study Guide. First, it is intended to aid professionals wishing to achieve AACE Internationals specialty certification in Earned Value Management (EVM). Second, the intent of the Earned Value Professional Certification Study Guide is to assemble and summarize various topics considered essential for earned value professional (EVP) knowledge, as outlined in AACE Internationals Recommended Practice 11R-88, Required Skills and Knowledge of Cost Engineering and included in the current edition of AACE Internationals Skills and Knowledge of Cost Engineering. We expect that the Earned Value Professional Certification Study Guide will be as popular and useful as the CCC/CCE Certification Study Guide. This