QSO 420 3-2

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Southern New Hampshire University *

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Accounting

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Apr 3, 2024

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Southern New Hampshire University QSO 420:3-2 Final Project Milestone One Prof. Smith Soucie, Joseph 3-30-2024

Basic Elements Here is the introduction to the basic elements of earned value (EV), planned value (PV) actual cost (AC) & budget at completion (BAC) and where they can be found on the project charter. First taking a look at EV, earned value is the percentage of the total budget of the project at the time of completion. Earned value is also known as the budgeted cost of work performed or BCWP. To calculate EV by multiplying the budget of the project work or activity by the percentage of the progress completed on the project activity or work completed (Lukas, J. A. 2012) . Next, Planned Value is the budget for the work that has been scheduled to be completed. This is the portion of the project that the capital that has budgeted to be spent at the given time during the duration of the project. This is also referred to budgeted cost of work schedule or BCWS (Lukas, J. A. 2012) . Then, looking at the actual cost of the project, simply the actual cost is the capital or money spent for the work completed on the project. Actual cost is also referred to actual cost of work performed or ACWP (Lukas, J. A. 2012) . Finally, the budget at completion is the total approved budget when the scope of the project is done to completion, barring any project contingencies or project incidents. When examining the project charter the planned value, earned value, and actual cost are at the top of the charter showing the current capital utilized and the cumulative capital used for the project and the budget at completion subject line is just below the cumulative of the PV, EV, and AC displaying the project capital spent ( Earned Value Reporting , n.d.).

Analyze After reviewing the case study of the Clothes ‘R’ Us project charter, what I found is the project of managing the IT project, ran from through all of 2002 and six months into 2003. What I found interesting is in July of 2002 and September 2002 the project had requirements freeze on the project which is why the project ran into six months of 2003. Also looking over the project charter I also found that during the project the inventory cost grew during the project duration receiving in inventory also training on the new IT setup didn’t start up into four months into the project training new hires to effectively use the new software. At the end of the project, the Software and Hardware purchase and maintenance of the software and hardware didn’t exceed the total amount since there was the freeze in July and September. If the project would have continued, I believe the project would have finished sooner but would have gone over budget. Earned Value Discussing some of the methods of how to determine earned value, the first method is the figuring throughout the project using the percent through percent finish method some of examples of this is the 50/50, 25/75,80/20, and the 0/100 method. Some of the variance of this methods include the percent complete earned value method, weighted milestone method, combining the two with weighted milestones with percent complete earned value method, and finally units completed EV method, this is when you have physical units to measure. The other two methods are apportioned effort earned value method and the level of effort earned value method (Blázquez & Blázquez, 2020). Apportioned effort is the method of planning and measuring the EV for the effort that is related in direct proportion to measure effort ( Apportioned Effort , n.d.). The level of Effort method refers to the activities that are the managers overhead of continuing a project that does not produce or manufacture and specific products of a project.

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After reading over the case study, the best method that fits the case study is the Level of Effort method, simply because the case study is producing or manufacturing nothing physical but creating an IT program for Clothes R us to operate more efficiently. . . References: Apportioned effort . (n.d.). Humphreys & Associates. https://www.humphreys-assoc.com/evms/apportioned-effort-ta-a- 97.html#:~:text=Apportioned%20effort%20is%20a%20method%20of%20planning %20and,is%20the%20most%20typical%20use%20of%20this%20method . Blázquez, D., & Blázquez, D. (2020, April 25). Earned Value methods to evaluate work performance. Project 2080 . https://project2080.com/en/earned-value-methods/#:~:text=The%20higher%20the %20schedule%20risk,use%20to%20determine%20work%20performance . Earned value reporting . (n.d.). https://www.projectengineer.net/tutorials/earned-value-tutorial/earned-value-reporting/ . Lukas, J. A. (2012). How to make earned value work on your project. Paper presented at PMI® Global Congress 2012—North America, Vancouver, British Columbia, Canada. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/make-earned- value-work-project-6001#:~:text=Earned%20Value%20(EV)%20is%20the,of%20work %20performed%20(BCWP) .