Senior management has requested a status update on the workstation installation project. As a part of this update, managers have requested that you present an Earned Value analysis.
I have imagined three scenarios for project cost and schedule metrics that could have occurred for this project, shown in Table 3 below. As of the end of the reporting period, according to the original schedule, you were expecting to have completed all work through Activity I.
- Calculate the values indicated in Table 2 for each of the three scenarios and provide a verbal interpretation of what each answer means. I have filled in the first answer as an example of what senior management expects.
- Provide a written interpretation of the results. For each scenario:
- What would be the implications for managing the project (e.g., corrective actions, if any)?
- What statement would need to be made to the project stakeholders?
Be sure to take into account all work completed to date in making your calculations, even if the work was not scheduled to be completed at this time (i.e., is ahead of schedule). Use the assumption that the project can take credit for partially complete work. (Hint: for Scenario 3, take into account the partial work done on Task J).
Use the ETC based on typical variances and the EAC using CPI methods for computing ETC and EAC (See pp. 181-187 of the PMBOK Guide and pp. 247-253 of Marchewka). Note: there is an error in Marchewka on page 251 - ETC should be Estimate to Complete.
Some additional project notes (in response to questions posed by previous classes):
The deliverable is to fill out the matrix of earned value calculations for each of the three scenarios, given the information provided in Table 3. I recommend that you use Excel or another spreadsheet program to do the calculations, using the standard formulas as shown in Marchewka and the PMBOK Guide.
Each of the scenarios should give you slightly different results for most of the calculations, especially those for cost and schedule performance.
Also, it is important that you use the ETC based on typical variances and the EAC using CPI calculations per the assignment instructions, otherwise you will arrive at different answers than I have calculated in the answer key.
I filled in the answer for the first calculation which, based on the assignment, indicated that the expected work to have been completed at this point in the hypothetical project was through Activity I. In performing your calculations, assume that the percentages complete are correct for all activities as of the date you are preparing the table, and give credit for any work that has been partially completed, even if it is ahead of schedule.