When Looking At The Life Of A Project Plan It Is Useful To G

When Looking At The Life Of A Project Plan It Is Useful To Graph And

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a given project. Complete exercise 2 in chapter 13 of the textbook. Given the data provided, in an excel spreadsheet, PowerPoint, or other appropriate method of delivery, determine the following: Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), Cost Performance Index (CPI). In words, answer the questions provided with the exercise. Reflect on the assessment of this project assessment. Should the project continue to improve? APA format is not required, but solid academic writing is expected. Exercise 2 On day 51 a project has an earned value of $600, an actual cost of $650, and a planned cost of $560. Compute the SV, CV, and CPI for the project. What is your assessment of the project on day 51? Reference Larson, E. W., & Gray, C. F. (2014). Project management: The managerial process (6th ed.). New York: McGraw-Hill/Irwin

Paper For Above instruction

This paper analyzes the project performance based on the given data from Exercise 2 in chapter 13 of Larson and Gray’s (2014) textbook. It computes key project management metrics—Schedule Variance (SV), Cost Variance (CV), and Cost Performance Index (CPI)—to assess whether the project is on track and whether it warrants continuation or corrective action. The assessment utilizes Earned Value Management (EVM) techniques to provide quantifiable insights into project status on day 51.

Calculation of Project Metrics:

The provided data indicates that on day 51, the project has an Earned Value (EV) of $600, an Actual Cost (AC) of $650, and a Planned Value (PV) of $560. Using these figures, the following calculations are performed:

Schedule Variance (SV)

SV = EV - PV = $600 - $560 = $40

A positive SV of $40 indicates the project is ahead of schedule, meaning the work accomplished exceeds what was planned at this point.

Cost Variance (CV)

CV = EV - AC = $600 - $650 = -$50

A negative CV of -$50 suggests the project is over budget; the actual costs have surpassed the value of work performed, reflecting cost overruns.

Cost Performance Index (CPI)

CPI = EV / AC = $600 / $650 ≈ 0.923

A CPI below 1.0 indicates that for every dollar spent, the project is earning less than a dollar's worth of work—confirming inefficiency in cost performance.

Assessment of Project Status:

The combined analysis reveals that, despite being ahead of schedule, the project is over budget and experiencing cost inefficiencies. The positive schedule variance suggests that corrective actions to maintain the schedule may not be immediately necessary; however, the negative cost variance and CPI below unity are concerning. These metrics imply that continuing the project as currently managed could lead to further budget overruns, risking project viability unless cost controls are enforced.

Given this status, it’s advisable to implement stricter cost management practices, reassess resource allocations, and monitor performance closely. If these corrective strategies are effective, the project could continue to progress without jeopardy. Conversely, without financial adjustments, the project risks exceeding budget constraints, making continuation unwise without remedial actions.

In conclusion, while the schedule appears to be on or ahead of plan, the financial indicators advise caution. The project team should prioritize cost control measures and performance monitoring to ensure project objectives are met within budget. Ongoing evaluation is essential to determine whether the project can be steered back on track or if additional corrective measures are necessary.

References

• Larson, E. W., & Gray, C. F. (2014). Project management: The managerial process (6th ed.). McGraw-Hill/Irwin.