Reference no: EM133730504

Homework: EVM for Project Optimization Presentation

Overview

In the early days of project management, the control of project cost and project schedule were considered to be separate activities. If the reported project costs remained below the planned budget and the reported project progress remained on or ahead of schedule, then the project was considered to be on track. The shortcoming of this approach is that if the project costs were below budget, it could indicate that the planned work is not being accomplished at the necessary rate. To address this potential shortcoming, an integrated method of controlling and reporting budget and schedule was needed.

Earned value management (EVM) was developed in response to the need to integrate the control and reporting of project cost and schedule. EVM techniques have been codified by the American National Standards Institute into a published standard. The Project Management Institute has developed a practice standard for earned value management that serves as a complement to its Project Management Body of Knowledge (PMBOK) guide. The use of EVM is often mandated in procurements issued by the U.S. government and has become more common in private industry.

The state of a project is assessed using earned value measurement (EVM) measures and supporting project documentation. The results of such an homework are typically compiled in a report written for the project manager that summarizes the state of the project and identifies areas in which performance is currently or potentially deficient.

For this summative homework, you will create a presentation for a project manager based on a case study that reports the project's performance, including any current or potential deficiencies that you have identified, as well as your recommendations for improving project performance.

Prompt

The state of a project is assessed using earned value measurement (EVM) measures and supporting project documentation. The results of such an homework are typically compiled in a report written for the project manager that summarizes the state of the project and identifies areas in which performance is currently or potentially deficient.

For this summative homework, you will create a presentation for a project manager based on a case study that reports the project's performance, including any current or potential deficiencies that you have identified, as well as your recommendations for improving project performance.

To purchase and access the case study for this homework, please see the course syllabus or the Module One resources.

Specifically, the following critical elements must be addressed. Use presentation notes ("speaker notes") to articulate those points that are not observable in the presentation:

I. Earned Value Parameters

A. Define the basic elements used to calculate EVM measures-earned value (EV), planned value (PV), actual cost (AC), and budget at completion (BAC)-and where you would find them in project documentation.

B. Analyze the project documentation from the case study for the data necessary to establish EVM parameters. In other words, is everything you need to establish the EVM parameters for this project contained within that documentation? If not, explain how you might obtain it. Be sure to use specific examples to justify your rationale.

C. Discuss the various methods used to determine earned value.

D. Select the most appropriate method for determining earned value for the project in the case study. Be sure to use research to substantiate your position.

II. Earned Value Management Calculations

A. Demonstrate how EV, PV, and AC are used to calculate the following EVM measures: cost variance (CV), cost performance index (CPI), schedule variance (SV), schedule performance index (SPI), estimate to complete (ETC), estimate at completion (EAC), and variance at completion (VAC).

B. Employ EVM equations to calculate the EVM measures (CV, SV, CPI, SPI) for the project in the case study.

C. Explain the implications for the projects in the case study when CPI is greater than or equal to 1.0, CPI is less than 1.0, SPI is greater than or equal to 1.0, and SPI is less than 1.0.

III. Interpretation of EVM Statistics

A. Explain the use of EVM statistics for identifying potential project performance deficiencies.

B. Interpret the EVM statistics calculated for the project in the case study in terms of current or potential deficiencies. Do the statistics imply or identify any deficiencies? If so, what are they? Be sure to support your reasoning with research.

C. Discuss the role of EVM principles in achieving integrated cost and schedule control. Be sure to substantiate your claims with research.

D. Interpret the EVM statistics calculated for the project in the case study. Do they lend themselves to the successful integration of cost and schedule control for this project? Be sure to cite research to justify your position.

E. Make appropriate recommendations for improving integrated cost and schedule control for the project in the case study. Be sure to use research to justify your recommendations.

IV. Application of EVM

A. Assess the role of integrated cost and schedule control in improving overall project performance. Be sure to use research to substantiate your reasoning.

B. Analyze the overall performance of the project in the case study based on your interpretation of the EVM statistics and with regard to integrated cost and schedule control.