Project Management-PMAN 650 Session 5 Individual Assignment

PMAN 650Session 5 Individual AssignmentEarned ValueIntroductionAll of you have had at least an introduction to earned value management in the projectmanagement fundamentals course. Many of you may have had the opportunity to use earnedvalue management in your professional careers. In practice, most EVM analysis results aregenerated by scheduling software or other applications. As a project manager, you must have agood handle on the concepts and be able to verify the accuracy of EVM analysis results.In this assignment, you will have an opportunity to brush up and expand upon your EVMknowledge and skills by applying EVM concepts to a practical problem. THIS ASSIGNMENTREQUIRES A MANUAL ANALYSIS – DO NOT USE MICROSOFT PROJECT.Problem BackgroundYour project consists of six activities shown in the table below, along with: (1) planned start andfinish dates; (2) activity budgets; and (3) earned value (EV) accrual rules from you project costmanagement plan.ActivityPlanned StartPlanned FinishBudgetActivity OneMon – 10/13/14Fri – 10/31/1410,000Activity TwoMon – 10/20/14Fri -11/28/1430,000Activity ThreeMon -11/3/14Fri -11/14/147,000Activity FourMon -10/13/14Fri -11/14/1420,000Activity FiveMon 11/17/14Fri – 12/5/1410,000Activity SixMon -12/8/14Fri -12/19/147,000EV AccrualRulePercentComplete withGatesFixed Formula-50/50Fixed Formula-20/80WeightedMilestonesFixed Formula –0/100Fixed Formula –0/100Activity Two has a start-to-start relationship (one week lag time) with Activity One. Activity Threehas a finish-to-start relationship with Activity One. Activity Five has finish-to-start relationshipswith activities Three and Four. Activity Six has finish-to-start relationships with activities Two andFive.Assumptions1. Assume a five-day work week.2. For all activities (except Activity Four), assume the expenditure rate is constant over theduration of the activity, i.e.:PMAN 650Session 5 Individual AssignmentEarned ValueExpendituresTimeFor Activity Four, assume the expenditure profile shown below:5.5KExpenditures3.0K12435WeeksThe project sponsor wants you (the PM) to present a project cost and schedule performanceassessment using data through Friday, Nov 7, 2014. You have collected the followinginformation:ActivityActivity OneActivity TwoActivity ThreeActual StartMon – 10/13/14Mon – 10/20/14Mon -11/4/14Actual FinishFri – 11/3/14Actual Cost12,00012,0004,000PMAN 650Session 5 Individual AssignmentEarned ValueActivity FourActivity FiveActivity SixMon -10/13/1420,00000For Activity One, three equally-valued gates have been established and all gates are completeas of 11/7/14.For Activity Four, four milestones have been established with the following values: (1) milestone1 – 30%; milestone 2- 30%; milestone 3 – 10%; milestone 4 -30%. Three of the milestones arecomplete as of 11/7/14.Show all work. Round dollar values to the nearest dollar. Calculate allother variables to three decimal places.1. Earned Value Measuresa. Calculate earned value measures for each activity and for the cumulative projectas of 11/7/14; fill in the table below:ActivityPlanned Value(PV)Earned Value (EV)Actual Cost (AC)Activity OneActivity TwoActivity ThreeActivity FourActivity FiveActivity SixEntire Project12,00012,0004,00020,000002. Earned Value Performance Measuresa. Calculate earned value performance parameters for each activity and for thecumulative project as of 11/7/14; fill in the table below:ActivityActivity OneActivity TwoScheduleVariance (SV)SchedulePerformanceIndex (SPI)Cost Variance(CV)CostPerformance Index(CPI)PMAN 650Session 5 Individual AssignmentEarned ValueActivity ThreeActivity FourActivity FiveActivity SixEntire Projectb. Is the project ahead of schedule, on schedule, or behind schedule? Whatinformation are you using to make this assessment and why?c. Is the project over budget, under budget, or on budget? What information are youusing to make this assessment and why?3. Earned Value Forecastsa. Calculate the range (low/most-likely/high) of possible Estimates-at-Completion(EAC).b. Using the low EAC, what is the Estimate-to-Complete (ETC)?c. Using the high EAC, how much more or less money (other than the currentbudgeted amount) will you need to finish the project?d. How much would the Cost Performance Index (CPI) have to change in order tocomplete the project within the original budget?