PJM330 Colorado State Chapter 13 Effective Project Scheduling and Control HW

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Business Finance

pjm330

Description

Please respond to both POST1: and POST2: with at least 150 words and 1 APA cited reference.

Required

  • Chapters 13 & 14 and Chapter 17, Sections 17.3, 17.5, 17.6, 17.7, and 17.11 in Project Management: A Systems Approach to Planning, Scheduling, and Controlling
  • Part 1: Chapter 7 and Chapter 11, Section 11.5 in A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

Recommended


POST1:

  • Provide a brief project scenario (describe the purpose of the project) and recommend an appropriate estimation approach from those described in the assigned readings. Be sure to cite the source of the estimation approach in your post.

Project Managers apply Earned Value Management (EVM) to manage and monitor project performance. According to Kerzner (2017), Earned value management (EVM) is a systematic process that uses earned value as the primary tool for integrating cost, schedule, technical performance management, and risk management; without using the EVMS, determining status can be difficult. EVM offers measureable information for project judgement building. Today EVM is a mandatory requirement of the US government; the Office of Management and Budget (OMB) promotes use of EVM as a preferred performance-based management system to manage software projects (Dwivedi, 2019).

Project Scenario:

Imagine you are managing a software development project that is expected to be completed in 10 months, with a budget cost of $20,000 per month. 4 months have passed and the project is 30% completed, at a cost so far of $50,000. This is where we can figure out if the project is on-time and on-budget subsequently after 4 months.

1.) Calculate the Planned Value and Earned Value by looking at the Project Scenario example above (Sharma, 2019).

  • Budget at Completion (BAC) = $20,000 (per month) * 10 (Months) = $200,000
  • Actual Cost (AC) = $50,000
  • Planned Completion = 4/10 = 40%
  • Actual Completion = 30%

As a result:

  • Planned Value (PV) = Planned Completion (%) * BAC = 40% * $200,000 = $80,000
  • Earned Value (EV) = Actual Completion (%) * BAC = 30% * $200,000 = $60,000

2.) Compute the earned value management cost and schedule variances:

  • Cost Variance (CV)= EV – AC = $60,000 – $50,000 = $10,000
  • Schedule Variance (SV) = EV – PV = $60,000 – $80,000 = -$20,000
  • Provide reasons for why the approach is appropriate for the given situation.

Analysis: Since the Cost Variance is positive, then this demonstrates that the software development project is under budget. And since the Schedule Variance is a negative amount then this demonstrates that the budget for the project is behind schedule.

-Venus

References:

Dwivedi, U. (2019). Earned Value Management Explained. Retrieved from: https://www.projectsmart.co.uk/earned-value-manage...

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling and controlling (12th ed.). New York, NY: Wiley

Sharma, R. (2019). Cost Variance (CV) and Schedule Variance (SV) in Earned Value Management. Retrieved from: https://www.brighthubpm.com/monitoring-projects/57...



POST2:

Estimating project activity duration can be done depending on the information provided in the scope of work which can help determine the resources that are required for the project and quantities, also, this helps establish a schedule for the project, as well as the skill level of personnel to work in the project. Many factors can influence the duration estimates, for example time constraints, type of resources, or the effort that is involved towards accomplishing goals. If detailed information and data is available about the project, then the accuracy of estimate is improved. The estimating approach tools and techniques include the following: Expert judgment, analogous estimating, parametric estimating, three-point estimating, bottom-up estimating, and data analysis techniques (PMI, 2017).

My project scenario is to remodel a small house, 1500 sq ft. similar to a previous remodeling project. Will include new roof, floors, entire kitchen, and electrical, new paint for interior and exterior walls, whole bathrooms, maintain the brick wall exterior, interior double sheet-rock walls, new ac unit and a new mail box. A similar project took 20 days to complete, with 4 experienced workers and 4 helpers. With a budget of $30,000 to pay personnel and material purchasing. To estimate this project, I would use the analogous estimating approach.

Since this project is similar to a previous project, having recorded data of expenses, project duration time, number of personnel and skill level, the analogous estimating approach would make sense to get the project done. I would add an extra 15% for cost variance (CV) to help handle price changes, and 2 extra days for schedule variance.

At half way (10th day) of the project I would evaluate the progress of the project by reviewing the Actual Cost (AC), Planned Value (PV) and Earned Value (EV), from that, decide if changes are necessary in order to get the project completed within schedule and within budget. According to Kerzner (2017, pg.513, 515), all variances must be tracked and reported. The formula to calculate Cost Variance is: CV = EV- AC, if the cost variance is negative, then the project is over budget. To calculate the schedule variance, the formula is SV = EV – PV, if the SV is negative, means that the project is behind schedule.

References:

Project Management Institute. (2017). A guide to the project management body of knowledge: (Pmbok® guide). Newtown Square, PA, USA.

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: Wiley.

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Explanation & Answer

Attached.

Running head: PROJECT SCHEDULING AND CONTROL

Project Scheduling and Control
Student’s Name
Professor’s Name
Course Title
Date

1

PROJECT SCHEDULING AND CONTROL

2

Project Scheduling and Control
Response to Post 1
Earned value management (EVM) is an efficient methodology that helps to assess project
performance compared to the project baseline. It offers comprehensive information about a project
in the execution stage where planning is practical. EVM evaluates the performance of a project with
a combined budget and schedule based on a wo...


Anonymous
Excellent resource! Really helped me get the gist of things.

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