Reference no: EM131486071

Jones Enterprises (JE) is a family-owned business operating in the Southeastern United States. The company specializes in guided tours of musical places of historical interest such as Sun Studios, Stax Records, the Ryman Auditorium, FAME Studios, and so on. What started out as a hobby for second generation owner-operator, Sonny Jones, has now turned out to be a full-time vocation as JE employs more than 35 staff members and offers seven different tours ranging from two to five days. Recently, JE partnered with Ardent Studios in Memphis, Tennessee. Ardent is primarily known as the recording site of the under-appreciated early 1970s seminal power pop band, Big Star, as well as a recording site for REM and The Replacements. Specifically, Ardent agreed to open its doors to the large numbers of international fans who make pilgrimages to Memphis each year. At an earlier meeting, Sonny Jones and Jody Stephens, Ardent's Studio Manager, talked about providing an entire package for Ardent's visitors that included visits to Sun Studios, Stax Records, Graceland, and several Beale Street stops. Based on the number of expected visitors and the days they would stay in Memphis, the total annual estimated cost would be $235,000. The cumulative planned cost schedule looks like this (starting with month one, in $000s): 1 2 3 4 5 6 7 8 9 10 11 12 15 35 75 110 145 170 205 215 220 225 230 235 Sonny and Jody shake on it. Four months later, the two partners meet to review their plan's progress. They discover that only 80% of their plan has come to fruition (they did not obtain the necessary permission to visit Graceland as desired), and to make matters worse, they have overspent their planned expenditures by $33 thousand. Upon further investigation, they also come to the conclusion that visitors will never visit Graceland as planned, so the internal value of the package is ratcheted back to $195. Jody is not very happy with this situation as it means less profit for Ardent Studios. As a result, he hires a local Memphis project management firm. The firm advises Jody to develop some meaningful project metrics including CPI, BAC, TCPI, ETC, and EAC. Jody is perplexed by all this alphabet soup gobbledygook so he gives his friend, Tony Swaim a call for assistance. Tony sees this as an excellent case study for fledgling project management students so he asks for your help. Specifically, your task is to (a) calculate CPI, BAC, TCPI, ETC, and EAC and (b) interpret what these metrics mean to the project.