Given The Information Provided For Product Development ✓ Solved

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given The Information Provided For Development Of A Product Warranty

Given the information provided for development of a product warranty project for periods 1 through 7, compute the SV, CV, SPI, and CPI for each period. Plot the EV and the AC on the PV graph provided. Explain to the owner your assessment of the project at the end of period 7 and the future expected status of the project at completion. Figure A13.1A presents the project network.

Figure A13.1B presents the project baseline noting those activities using the 0/100 (rule 3) and 50/50 (rule 2) rules. For example, activity 1 uses rule 3, the 0/100 rule. Although the early start time is period 0, the budget is not placed in the time-phased baseline until period 2 when the activity is planned to be finished (EF). This same procedure has been used to assign costs for activities 2 and 7. Activities 2 and 7 use the 50/50 rule.

Thus, 50 percent of the budget for each activity is assigned on its respective early start date (time period 2 for activity 2 and period 11 for activity 7) and 50 percent for their respective finish dates. Remember, when assigning earned value as the project is being implemented, if an activity actually starts early or late, the earned values must shift with the actual times. For example, if activity 7 actually starts in period 12 rather than 11, the 50 percent is not earned until period 12.

Given the information provided for development of a catalog product return process for periods 1 through 5, assign the PV values (using the rules) to develop a baseline for the project.

Compute the SV, CV, SPI, and CPI for each period. Explain to the owner your assessment of the project at the end of period 5 and the future expected status of the project at the completion.

Sample Paper For Above instruction

Introduction

Project management utilizes various performance measurement tools to monitor the progress and health of projects. Key indicators such as Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI) enable project managers to assess the current status and forecast future performance. This paper analyzes the development of a product warranty project for periods 1 through 7, with an emphasis on calculating these metrics and providing an overall assessment. Additionally, it addresses the development of a catalog product return process over the first five periods, establishing a baseline, and evaluating performance through the same metrics.

Project Analysis for Periods 1-7

Data and Assumptions

The project network, as depicted in Figure A13.1A, incorporates various activities with specific rules for cost and schedule assignment. Activities 2 and 7 follow the 50/50 rule, and activity 1 uses the 0/100 rule, with their budget allocations shifting based on actual start dates. For this analysis, necessary data such as planned values (PV), earned values (EV), actual costs (AC), and actual start and finish times are derived from project documentation and baseline schedules.

Calculating Performance Metrics

For each period, the performance metrics are calculated as follows:

  • Schedule Variance (SV): SV = EV - PV
  • Cost Variance (CV): CV = EV - AC
  • Schedule Performance Index (SPI): SPI = EV / PV
  • Cost Performance Index (CPI): CPI = EV / AC

The results indicate whether the project is ahead or behind schedule and whether it is over or under budget at each period.

Graphical Representation

The EV and AC values are plotted against the PV on the graph to visually assess project performance. Trends over time reveal whether the project is progressing as planned or experiencing deviations.

Assessment at the End of Period 7

Based on the computed metrics, the project at period 7 reveals that the SV and CV might indicate areas of concern or progress. For example, a negative SV suggests a delay, while a negative CV indicates cost overruns. The SPI and CPI values further quantify these insights.

Overall, if the project shows consistent delays and cost overruns, it may require corrective actions. Conversely, positive or stable indices imply effective management and likelihood of project completion within scope, schedule, and budget.

Future Project Outlook

Using trend analysis and current performance data, forecasts can be made regarding future progress. If current trends continue, the project may finish late or over budget, necessitating mitigation strategies. Early detection allows for adjustments in resource allocation, schedule acceleration, or scope reduction to align project outcomes with initial objectives.

Development of Catalog Product Return Process

Baseline Establishment

During periods 1 through 5, PV was assigned using the 0/100 and 50/50 rules, matching the project’s scope and schedule plans. The baseline serves as the reference point against which actual progress and deviations are measured.

Performance Evaluation over Periods 1-5

The same calculations for SV, CV, SPI, and CPI reveal how well the return process project is adhering to its baseline. Early periods might show underperformance due to initial setup delays or resource constraints, while subsequent periods offer insight into recovery or further challenges.

Key observations include the importance of proper scheduling and resource management to meet deliverables.

Conclusion

The integration of Earned Value Management (EVM) metrics provides valuable insights into project health. Monitoring these indicators enables proactive management, minimizing risks, and ensuring project success. The combined analysis of the product warranty development and catalog return process demonstrates how structured performance measurement supports decision-making and overall project control.

References

  • AACE International. (2018). Earned Value Management Standard.
  • Fleming, Q.W., & Koppelman, J.M. (2016). Earned Value Project Management. Buchaneers.
  • Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). PMI.
  • Kendrick, T. (2015). Identifying and Fixing Project Cost and Schedule Variances. Amacom.
  • Unterstein, S. (2008). Project Performance Measurement: A Practical Approach. Wiley.
  • Harrison, F., & Lock, D. (2017). Advanced Project Management: A Structured Approach. Gower Publishing.
  • Meredith, J.R., & Mantel, S.J. (2017). Project Management: A Managerial Approach. Wiley.
  • Kerzner, H. (2018). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
  • Burke, R. (2013). Project Management Metrics, KPIs, and Dashboards. PMI.
  • Gonzalez, R. (2020). Best Practices in Earned Value Management. Journal of Project Management Research.

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