Final answer:
PMI provides standards for Earned Value Management, a method that integrates project scope, cost, and schedule to assess performance. Key components include Planned Value, Earned Value, and Actual Cost, while performance measurements like CPI and SPI indicate cost and schedule efficiency.
Step-by-step explanation:
PMI Standards for Earned Value Management
The Project Management Institute (PMI) outlines standards for Earned Value Management (EVM), which is a project management technique used to assess project performance and progress in an objective manner. It integrates project scope, cost, and schedule measures to help the project management team assess and measure the project performance and progress. EVM involves three key data elements:
- Planned Value (PV), also known as Budgeted Cost of Work Scheduled (BCWS), represents the total cost estimated for scheduled work at a given point in time.
- Earned Value (EV), or Budgeted Cost of Work Performed (BCWP), indicates the value of work actually completed to date compared to the original budget.
- Actual Cost (AC), or Actual Cost of Work Performed (ACWP), is the total cost incurred for the work completed by the specified date.
The PMI standards for EVM also include performance measurements, such as the Cost Performance Index (CPI) and the Schedule Performance Index (SPI), which are key indicators of cost efficiency and schedule adherence, respectively. By applying these EVM metrics accurately, project managers can identify variances from the project plan and take corrective actions to address issues and keep the project on track.