...Earned Value Analysis is a snapshot of a project to help detect problems that might arise early in the progress. It is a standard method of measurement for a project’s progress at any time, while at the same time it forecast the final cost and completion date. It also plays a big part in analyzing the variances in the schedule and budget in the project to see if the project at the end will be cost less than, greater than or equal to the budgeted cost and if the project will be completed on time. Husky currently has 4 phrases in their project which is the based on an organized Work Breakdown Structure. The Work Breakdown is the building block for planning project where all the work scope is broken down farther for planning, budgeting, scheduling, work authorization, cost accounting, management control, and progress measurement. At the point in time we should already completed phrase 4 as well as phrase 3 however, we can assumed that based on the spreadsheet that Husky show that the project is behind schedule because of the fact that part of phrase 3 has not been completed and phrase 4 did not even start yet since all the columns except for PV is currently blank. Earned Value Analysis has 3 keys fundamental values that is the most important in the budget cost of the measuring progress against the baseline. These three are the 1. Planned Value is the budgeted cost of the task as scheduled. Currently in the excel spreadsheet, there is the planned cost of the each tasks in...
Words: 1212 - Pages: 5
...Week 4 homework: Part 1 A) The crash cost per day per activity 800-300=500 350-250=100 900-400=500 500-200=300 550-300=250 B) Which activities should be crashed to meet a project deadline of 10 days at minimum cost? What is the cost impact of crashing these activities? A; B; C $450 C) Find the new budget (or cost of the project) $1875 Part 2 A) The crash cost per day per activity 800-300=500 350-250=100 900-400=500 500-200=300 B) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? What is the cost impact of crashing these activities? [6 points] B $50 Part 3 A) Calculate the CV (Cost Variance). $535-$540=-5 B) Is the CV favorable or unfavorable? Yes C) Calculate the SV (Schedule Variance). $535-$523=$12 D) Is the SV favorable or unfavorable? No Part 4 A) Calculate the CV (Cost Variance). $34-$39=-5 B) Calculate the CPI (Cost Performance Index). $39/$34=1.15 C) Is the Cost favorable or unfavorable? Yes D) Calculate the SV (Schedule Variance $39-$42=7 E) Calculate the SPI (Schedule Performance Index) $39/$42=.93 F) Is the schedule favorable or unfavorable? No Part 5 A) Calculate the CV (Cost Variance). $678-$550=128 B) Calculate the CPI (Cost Performance Index). $678/$550=1.23 C) Is the Cost favorable or unfavorable? Yes D) Calculate the SV (Schedule Variance). $678-$735=-57 E) Calculate...
Words: 325 - Pages: 2
...ACCT101 project Case5-3 1. Electric utility bills Method 1: As everyone knows, the electricity meters can be read every month. Therefore, in December the company will know the electricity usage of the former 12 months including that of December last year. And the usage of electricity in December this year can be included in the next year’s revenue. Method 2: Strictly speaking, the revenue recognized in method 1 is not earned in THIS YEAR. through the method of estimating the electricity usage in December this year, added by the actual usage of former 11 months, we can get record the revenue and then do some adjustment in the next year. 2. Retainer fee none of the $10,000 should be counted as revenue in 2006. In accordance with the Basic Recognition Criteria, the revenue cannot be booked unless the entity has substantially performed what is required in order to earn income. Furnishing legal advice upon request is the law firm’s required service to be provided in this case. Since they did not perform any consultant service, the law firm cannot book the revenue for year 2006. Another appropriate way is applying the franchises model in this situation. As a franchiser recognizes revenue during the period in which it provides the services, the law firm may settle the revenue when their first general advice service is made. 3. Cruise None of the $260,000 was revenue to Raymond’s in 2006 since the service would not be rendered until January 23, 2007. Journal entries...
Words: 316 - Pages: 2
...Formulas to Know for the Exam Although we do not suggest you memorize a lot of information to prepare for the exam, the following formulas are some of the items you do need to memorize, as well as understand. There will not be a lot of questions requiring you to use these formulas, but it will be helpful to be able to apply these at a moment’s notice. If you are not comfortable with math, you should be happy to hear that you can know none of these formulas and still pass the exam! The most important formulas are those relating to earned value, as earned value is a key component of monitoring and controlling. Formulas to Know for the Exam Title PMP® Exam Prep Chapter Reference Formula Present Value (PV) PV = FV (1 + r)n Integration Management Expected Activity Duration (Triangular Distribution)* P+M+O 3 Time Management Expected Activity Duration (Beta Distribution)* P + 4M + O 6 Time Management P−O 6 Time Management Beta EAD +/− SD Time Management LS − ES, or LF − EF Time Management Cost Variance (CV) EV − AC Cost Management Schedule Variance (SV) EV − PV Cost Management Cost Performance Index (CPI), or Cumulative CPI (CPIC) EV EVC or AC ACC Cost Management Schedule Performance Index (SPI) EV PV Cost Management Estimate at Completion (EAC) AC + Bottom-up ETC Cost Management Estimate at Completion (EAC) BAC CPIC Cost Management Estimate at Completion...
Words: 338 - Pages: 2
...Course Project Part 2 Theme Park December 10, 2012 Mr. Billy Bob AAA Theme Parks 2222 Theme Park Expressway Theme Park Tower Theme Park, Texas Via Email: Billybob@themepark.com Re: Proposal for JJJ Theme Park Executive Summary We have prepared the following proposal for a new turnkey theme park for the AAA THEME PARKS newest addition in the Theme Park area as requested and detailed in your RFP. We appreciate this opportunity to be of service to AAA THEME PARKS, and we look forward to your favorable review of the following information. The attached documentation will acquaint you with the approximate scope of our proposed work and will identify any work to be provided by others. This scope covers the complete construction and training for the JJJ Themepark. CBB Theme Park Construction, Inc. will manage and coordinate all facets of the new theme park. The JJJ Theme Park will consist of the following attractions: * Ferris Wheel * Mini Golf * Climbing wall * Carousel * Bowling * Go Cart * Ropes course The overall cost for this project is $4,449,920.00 and we are aware of the project schedule and the estimated completion date of 12/20/2013, and certainly believe that contracting for this work in the earliest stages of the process would be beneficial. Through our research of the area this project when completed will yield a net profit of $525,000.00. Once again, we appreciate this opportunity to be of service...
Words: 662 - Pages: 3
...our new estimate at completion of $5,039,790.43 and with the proper adjustments to our schedule we will be able to pull our completion date back into line. We should be able to keep the costs in line if not improve upon them by keeping a tighter day to day track of our progress and adding additional resources to tasks and shorten their duration. Overall this project is still within a margin of acceptance and will be operational and complete for its grand opening. Task Name | Fixed Cost | Fixed Cost Accrual | Total Cost | Baseline | Variance | Actual | Remaining | Theme Park Project | $0.00 | Prorated | $4,644,920.00 | $4,449,920.00 | $195,000.00 | $1,230,683.00 | $3,414,237.00 | Task Name | % Complete | Planned Value - PV (BCWS) | Earned Value - EV (BCWP) | AC (ACWP) | SV | CV | EAC | BAC | VAC | Theme Park Project | 40% | $1,651,866.67 | $1,086,640.60 | $1,230,683.00 | ($565,226.07) | ($144,042.40) | $5,039,790.43 | $4,449,920.00 | ($589,870.43) | Task Mode | Task Name | Start | Finish | Late Start | Late Finish | Free Slack | Total Slack | Manually Scheduled | Theme Park Project | Mon 4/14/08 | Mon 12/29/08 | Mon 4/14/08...
Words: 2997 - Pages: 12
...planned progress. Schedule Performance Index = (Earned Value)/(Planned Value) SPI = EV/PV Schedule Performance Index informs us that how efficiently we are progressing with compared to planned progress. Note that: * If SPI is greater than one, means more work has been completed than planned work. * If SPI is less than one, means less work is completed than planned work. * If SPI is equal to one, means work completed is equal to planned work. Cost Performance Index (CPI): Cost Performance Index tells us about the efficiency of cost utilized on the project. It is the measure of the value of work completed compared to the actual cost spent on the project. Cost Performance Index = (Earned Value)/(Actual Cost) CPI = EV/AC Cost Performance Index informs us that how much we are earning for each dollar spent on the project. Note that: * If CPI is less than one, mean we are earning less than the spending. * If CPI is greater than one, mean we are earning more than the spending. * If CPI is equal to one, mean earning and spending is equal Schedule Variance (SV): Schedule Variance tells us that how much we are ahead of or behind the schedule. Schedule Variance (SV) is a measure of schedule performance on a project. Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV) i.e. SV = EV – PV Schedule Variance becomes zero when the project finishes because all of the planned value will have been earned; i.e. PV=EV Note that: * If the Schedule...
Words: 373 - Pages: 2
...• o Question o Answer o Side 3 • o Budgeted At Completion (BAC) o How much was originally planned for this project to cost. No one formula exists. Is derived by looking at the total budgeted cost for the project. o No one formula exists. Is derived by looking at the total budgeted cost for the project. • o Planned Value (aka Budgeted Cost of Work Scheduled) (PV or BCWS) o How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time. Planned % Complete x BAC o Planned % Complete x BAC • o Earned Value (aka Budgeted Cost of Work Performed) (EV or BCWP) o How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule. EV = Actual % Complete x BAC o EV = Actual % Complete x BAC • o Actual Cost (aka Actual Cost of Work Performed) (AC or ACWP) o The money spent during a given period of time. Sum of the costs for the given period of time. o Sum of the costs for the given period of time. • o Cost Variance (CV) o The difference between what we expected to spend and what was actually spent. CV = EV-AC o CV = EV-AC • o Schedule Variance (SV) o The difference between where we planned to be in the schedule and where we are in the schedule SV = EV-PV o SV = EV-PV • o Cost Performance Index (CPI) o The rate at which the project performance is meeting cost expectations during a given...
Words: 394 - Pages: 2
...Communication Vol. 4, No. 4, November 2011, pp. 246Á251 (Re)conceptualizing Intercultural Communication in a Networked Society Damien Smith Pfister & Jordan Soliz We offer four theses about how intercultural communication is altered in a digitally networked era. Digital media shape intercultural communication by (1) producing new public fora capable of (2) hosting rich, multimodal ‘‘spaces’’ of contact on (3) a scale of many-to-many communication that (4) challenges traditional modes of representation. Keywords: Digital Media; Intercultural Communication; 2009 Iran Protests; Networked Communication As internetworked media technologies gradually diffused throughout the world, they have often been sparks for intercultural dialogue. Internet websites enabled web-savvy organizations, like the Zapatista Army of National Liberation, to circulate their views throughout the 1990s. The power of citizens to communicate directly with each other through digital media was not fully apparent until late 2002, when the pseudonymous Salam Pax began reporting through his blog what life was like for Iraqis in the run-up to the 2003 combat operations. Since then, citizens have relied on the tools of digital media to coordinate protests internally and communicate with outside audiences in a number of colorful revolutions: Rose (Georgia, 2003), Orange (Ukraine, 2004Á2005), Saffron (Burma, 2007), Green (Iran, 2009), and Jasmine (Tunisia, 2011). In January 2011, Egyptian citizens, mobilizing...
Words: 2781 - Pages: 12
...EARNED VALUE IN PROJECT MANAGEMENT Earned value is a term used in project management to refer to the process of assessing and evaluating the performance and progress of a given project in a purposeful and objective manner. According to Semolic (2009) and Webb (2009), most project managers usually use earned valued due to its ability to combine measurements of scope of a project, schedule of activities and costs incurred during the development and implementation of a project using a single system that is highly incorporated and integrated. Earned value helps in proper management, control and planning during project implementation. In addition, earned value is also preferred to other project management techniques because of its ability to provide accurate forecasts of cost estimates. According to Fleming and Koppelman (2010), earned value was introduced in project management more than forty years ago to facilitate establishment and determination of the most appropriate techniques of managing projects. Earned value also helped in determining the success of projects at their early stages. I would also assert that earned value management can also be used to track expenses incurred during implementation of projects as well as to communicate the status and progress of projects. Through earned value management, project managers are able to compare the current performance and progress of a project with the projected performance (Meredith & Mantel 2011; Jovanovich & Petrovic...
Words: 490 - Pages: 2
...as; a fixed budget, environmental constraints, and being able to execute this project on a short time schedule. Furthermore, the city would only have nine-month of supply of available for its population. The project management team at Prairie Water had to plan as well as execute the installation of an estimated 40 miles of pipeline. During the planning phase, the team had to retrieve; “eight stakeholder agreements, 145 land parcels and 44 permits in order to complete the project.”(Business Wire) Furthermore, the project management was only allotted a budget of 854 million dollars. However, “Through the use of skilled project personnel, the rigorous application of project management standards, processes and techniques, and the use of earned value management (EVM) techniques, the PWP were able to cut $100 million from the budget in the design phase without compromising quality and safety, bringing the construction budget to $754 million.”(Business Wire) Finally, the...
Words: 656 - Pages: 3
...1) If you were Gary Anderson would you have accepted this project after the director stated that it would be his baby all the way? Despite Henry Gable’s very apparent shadiness I would probably have taken the project too due to the backing that the project has. Even though the project had issues, based on all we have learned in project management, it is rare that a project has the amount of attention and backing from top executives, as well as, strong resources from the functional team. Many of the cases we studied are problematic because they did not have this type of backing and priority which in the end, created other conflicts. Do engineers with MBA’s aspire to high positions in management? I think the ones who have the unique ability and skillset of both a PM and Engineer probably do aspire to have high positions in management. However, in my limited experience, I think that most engineers would gravitate towards being a project engineer where they are experts in their field and are most comfortable with technical details as opposed to the administrative ones. Gary Anderson was a perfect example of this. I feel that many engineers lack the essential administrative and soft skills of a PM to motivate and manage a team to a successful outcome. Was Gary qualified to be project manager? I do not think that Gary was qualified to be a project manager. Just because ‘we can’ does not often mean ‘we should do.’ It was probably very easy for Gary to complete his MBA and therefore...
Words: 764 - Pages: 4
...Project Number: 4a Project manager: Project priority now: 1 Status as of: July 16, 2015 Earned value figures: PV EV AC SV CV BAC VACf $691,040.00 $497,369.33 $571,200.00 ($193,670.67) ($73,830.67) $1,692,000.00 1,371,965.74 EAC VAC EACf CPI PCIB PCIC TCPI 1,943,171.73 ($251,171.73) 3,063,965.74 .8707 .2939 .2939 1.07 Project description: Big Kola Company is a soda company which has been slowly losing business to specialized fruit drink markets. In an effort to actively compete with them and regain their customers the CEO has requested that they venture into that market. After much research they have decided on three high margin antioxidant based drinks. They include: cranberry, blueberry, and pomegranate. By making pomegranate the main item they predict a high potential to attract customers and a higher profit margin than other drinks. Status Summary: The project has started on time with the actual start date being January 3, 2012. Due to a delay in the schedule it has been extended from a closure of July 19 to July 2th, 2012 which management has accepted previously. The budget is presently over by $73,830.67. This has been brought on by the extension of the schedule. Cost is directly affected by schedule. Project Status based on Cost and Schedule: With regards to cost a lot is to be seen. When the labor and task hours are factored in it gives a baseline budget of $1,692,000. This can they be put up against a cost of...
Words: 924 - Pages: 4
...day per activity is as follows A= $25 B=$75 C=$150 D=$25 B. Activities B,D should be crashed to meet the deadline C. The extra cost associated to crash the project is crash cost of B$75+crash cost of D$25=$100 2. A. Some of the basic requirements for the project plan in order for EVM to be able to work are: - A project plan that identifies work to be accomplished, a value of planned work or Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS), and defined Earned Value (EV) or Budgeted Cost of Work Performed (BCWP). EVM implementations can include indicators and forecasts of cost performance (over budget or under budget) and schedule performance (behind schedule or ahead of schedule). However, the basic requirements of using EVM is that it has progress using PV and EV. B. It is a process used to find variances in projects based on the comparison of worked performed and work planned. EVM is used on the cost and schedule control and can be very useful in project forecasting. Earned Value Management will let you know the actual state of the project by comparing your current project performance against your plan. Knowing the project's performance will let you take actions needed to ensure that the project is completed on time and within budget. Like any tool, in order for EVM to be successful, it very important that it is used correctly. 3. A. The resource conflict that occurs is between activity C and D between days 5-9. Both of these tasks require 1 design...
Words: 357 - Pages: 2
... C. CPIC Management • Execute the IC’s CPIC policy within established standards and timeframes • Actively serve as the executive secretary to the IC’s CPIC Board. • Coordinates with others to ensure that the IT acquisitions are made in accordance with the IC’s CPIC policy. D. Contract Management • Coordinate with others to ensure that all contract SOWs accurately reflect the desired work and that the SOW contain all necessary details to not only enable a wide selection of bidders but ensure that any resulting contract/task order will meet the needs of the IC. • Track all ongoing contracts to ensure funds are expended in an appropriate fashion in accordance to the work being performed. • As per established due dates, perform Earned Value Management (EVM) contract evaluations where required and alert the project managers and management...
Words: 334 - Pages: 2