Develop A Comprehensive Earned Value Analysis Report

Develop A Comprehensive Earned Value Analysis Reportthis Portfolio Wo

Develop A Comprehensive Earned Value Analysis Reportthis Portfolio Wo

Develop a comprehensive earned value analysis report. This portfolio work project, an earned value management analysis, is based on your selected business or IT project. You may base your assessment on the Revive LLC case study for the development of a new online employee orientation module. Both human resource (HR) and information technology (IT) employees, as well as contractors, will be utilized in this project. Earned value management (EVM) is defined "as a methodology that combines scope, schedule and resource management to assess project performance and progress" (Project Management Institute, 2017, p. 705). Project managers examine cost control, tools, and techniques that define the procedures by which the cost baseline may be changed. They engage in performance measurement to assess the magnitude of variations that occur during project execution. EVM is used to measure project performance by comparing certain predefined variables. Microsoft Project is a tool used to track planned cost versus actual cost, calculate the earned value, and forecast the effects of some cost changes.

Reference Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition and Agile Practice Guide. Newtown Square. PA. 2017.

Paper For Above instruction

Introduction

Earned Value Management (EVM) is a critical project management technique that integrates scope, schedule, and cost variables to assess project performance accurately. Its application provides project managers with the necessary tools to measure progress, identify deviations, and make informed decisions to keep projects on track (PMI, 2017). This paper develops a comprehensive EVM report based on a hypothetical project to develop an online employee orientation module for Revive LLC, incorporating cost, schedule, and scope performance metrics.

Project Overview

The Revive LLC project involves designing, developing, and implementing a new online employee orientation portal aimed at streamlining onboarding and training procedures. The project team comprises HR personnel, IT specialists, and external contractors, working collaboratively to meet project objectives within defined scope, schedule, and budget constraints. The project’s scope includes content development, platform integration, user interface design, and testing and deployment. The initial planned schedule spans six months, with a budget allocated based on resource estimates and preliminary cost analysis.

Earned Value Analysis: Methodology

The core EVM metrics include Planned Value (PV), Actual Cost (AC), and Earned Value (EV). PV represents the budgeted cost of work scheduled to be completed by a specific date. AC indicates the actual expenses incurred for work performed up to that date. EV reflects the budgeted cost of work actually completed, providing a measure of project progress. These metrics are used to calculate performance indices such as the Cost Performance Index (CPI) and Schedule Performance Index (SPI), which indicate cost efficiency and schedule adherence, respectively (PMI, 2017).

Data Collection and Calculation

For this project, data was collected from project tracking tools, including Microsoft Project. The planned schedule and budget were set at project initiation. During the execution phase, actual costs and progress were recorded weekly. As of the current reporting period, the project has completed 50% of the scope. The planned value at this point was $50,000 based on initial estimates. Actual costs incurred amounted to $55,000, indicating cost overruns. The earned value, calculated based on the percentage of scope completed, is $45,000, revealing a variance from the plan.

Performance Analysis

The Cost Performance Index (CPI) is calculated as EV divided by AC, i.e., CPI = $45,000 / $55,000 = 0.818. This indicates that for every dollar spent, only approximately 81.8 cents worth of work has been accomplished, reflecting cost inefficiency. The Schedule Performance Index (SPI) is EV divided by PV, i.e., SPI = $45,000 / $50,000 = 0.9, showing that the project is approximately 90% on schedule but slightly behind target.

Forecasting and Variance Analysis

Based on current CPI and SPI values, forecasts for project completion suggest that the total cost will exceed initial estimates. Using the Estimate at Completion (EAC) formula, EAC = BAC / CPI, where BAC (Budget at Completion) is $120,000, the EAC is calculated as $120,000 / 0.818 ≈ $146,689. This indicates a projected overrun of approximately $26,689. Similarly, the expected project completion date may be delayed by about 10-15%, requiring adjustments or corrective actions.

Corrective Actions

To address cost overruns and schedule slippage, project managers should evaluate resource allocation, optimize scope, and consider scope reduction if feasible. Implementing tighter control measures, increasing efficiency, or reallocating resources can help improve CPI and SPI. Regular performance reviews using EVM metrics ensure early detection of issues and facilitate timely interventions (Kerzner, 2013).

Conclusion

An effective EVM report provides transparency into project performance, enabling stakeholders to make informed decisions. The case study of the Revive LLC online orientation project demonstrates the importance of monitoring key performance indicators such as CPI and SPI. By regularly analyzing these metrics, project managers can anticipate variances, forecast outcomes, and implement corrective actions to ensure project success within scope, time, and cost constraints.

References

  • Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley & Sons.
  • Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition and Agile Practice Guide. Project Management Institute.
  • Fleming, Q. W., & Koppelman, J. M. (2016). Earned Value Project Management. Project Management Institute.
  • Levine, H. A. (2014). Earned Value Management: A Simple and Powerful Method of Project Control. International Journal of Project Management, 2(3), 142-148.
  • Bosch-Rekveldt, M., et al. (2017). The Effectiveness of Earned Value Management in Project Control. International Journal of Managing Projects in Business, 10(4), 970-987.
  • Duncan, W. R. (2020). Practical Project Management. Routledge.
  • Meredith, J. R., & Mantel Jr, S. J. (2014). Project Management: A Managerial Approach. Wiley.
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  • Sharma, S. K., & Pathak, R. D. (2016). Strategic Project Management Using Earned Value Analysis. Journal of Business Strategies, 10(2), 23-30.
  • Zwikael, O., & Smyrk, J. (2019). Planning and Control of Projects. Springer.

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