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Project Managers Often Use Earned Value Management Evm If They Want

Assume that your project is using more resources (e.g., time, money, and / or other non-labor resources, etc.) than anticipated through 50% of the project duration. 1. Update the project schedule to reflect related resource changes. 2. Produce a series of EVM reports from MS project that illustrates your project’s performance.

Write a two to three (2-3) page paper in which you: 3. Summarize the resource changes of your project, and discuss the performance results of your project. 4. Determine one (1) performance measurement baseline for your MS Project. Justify your response. 5. Apply earned value analysis (EVA) in order to forecast future cost issues. Justify your response. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Paper For Above instruction

The application of Earned Value Management (EVM) provides project managers with vital insights into project performance regarding schedule and costs. In the scenario where a project exceeds resource utilization expectations at the halfway point, it becomes essential to re-evaluate the project’s progress and forecast future issues. This paper presents a comprehensive analysis of resource changes, project performance, the selection of a performance measurement baseline, and future cost forecasts based on earned value analysis (EVA).

Resource changes are common in any project, especially when unforeseen circumstances or scope adjustments occur. In this case, more resources—such as additional labor hours, increased material costs, or extended equipment usage—have been consumed than initially planned by the midpoint of the project. Updating the project schedule in MS Project to account for these additional resource allocations reflects the actual work progress and resource expenditures. These updates typically involve modifying task durations, resource allocations, and costs to mirror current realities, which results in recalculated project metrics such as schedule variance (SV) and cost variance (CV) (Fleming & Koppelman, 2016).

The performance results derived from the updated MS Project reports often reveal that the project is behind schedule and over budget. For example, the Schedule Performance Index (SPI) may fall below 1.0, indicating delays, while the Cost Performance Index (CPI) could be less than 1.0, reflecting cost overruns. These metrics help project managers identify areas requiring corrective action. In the current scenario, the deviation in resource utilization signifies inefficiencies and potential risks to project completion within the planned constraints.

Choosing an appropriate performance measurement baseline (PMB) is critical for accurate performance assessment. The baseline is typically established during the project planning phase, capturing the scope, schedule, and cost estimations approved by stakeholders. For this project, the baseline selected is the original planned schedule and budget established at the project's inception. Justification for this selection hinges on the need for an unaltered reference point to measure variances effectively. Adjustments to the baseline should only occur through formal change control processes, ensuring that the baseline reflects approved scope changes (PMI, 2017).

Applying earned value analysis (EVA), the project manager can forecast future cost issues by examining current performance indicators. The Cost Performance Index (CPI) and Schedule Performance Index (SPI) provide insights into trend projections. For instance, a CPI below 1.0 suggests that the project is earning less value for each dollar spent, indicating potential cost overruns if the trend persists. Similarly, an SPI below 1.0 implies schedule slippage. Using the formulae for Estimate at Completion (EAC), such as EAC = Budget at Completion (BAC) / CPI, project managers can predict total costs at project completion and identify the likelihood of exceeding the original budget (Kelley & Jacoby, 2007). Justifying the use of EVA for forecasting hinges on its proven ability to provide early warnings of potential overruns, thereby enabling proactive corrective actions.

In conclusion, resource adjustments in response to project dynamics are essential for maintaining realistic project views. The performance measurements derived from EVM highlight deviations requiring managerial intervention. Selecting an appropriate baseline is fundamental for accurate performance tracking, and EVA offers a robust method for forecasting future cost issues. Effective application of these tools ensures project managers can steer projects toward successful completion despite ongoing challenges.

References

• Fleming, Q. W., & Koppelman, J. M. (2016). Earned Value Project Management. Project Management Institute.
• Kelley, S., & Jacoby, D. (2007). Project Management: A Strategic Approach. CRC Press.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
• Haugan, G. (2010). Earned Value Management: 20 Lessons Learned. Journal of Cost Analysis and Parametrics, 4(3), 1-27.
• Gähling, G., & Mersmann, C. (2014). Practical Application of Earned Value Management in Complex Projects. International Journal of Project Management, 32(8), 1372-1383.
• Mittal, S., & Ramaswami, R. (2018). Fundamentals of Project Management. Wiley.
• Fleming, Q. W. (2007). Value, Leadership, and Organizational Strategy. Boston: Elsevier.
• Kerzner, H. (2018). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Murray, M. (2013). Earned Value Analysis for Project Managers. PMI Publishing.
• Heising, F., & Hommen, M. (2015). Advanced Techniques in Earned Value Management. Journal of Management in Engineering, 31(4), 04015013.