QSO-420 5-2 Milestone 3

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Southern New Hampshire University *

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QSO-420

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Industrial Engineering

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Jun 12, 2024

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docx

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5-2 Final Project Milestone Three QSO-420 Integrated Cost and Schedule Control SNHU Amanda Young June 5, 2024
EVM Statistical Use Earned value management utilizes data to track and measure project schedule performance, project budget, and project technical performance. Live data is taken from the baseline data utilizing several EVM formulas for project trends throughout the project timeline. Cost performance index (CPI), schedule and performance index (SPI) are run for index related statistics while cost variance (CV), schedule variance (SV), and variance at completion (VAC) are performance-based statistics. Actual cost (AC), budget at completion (BAC), earned value (EV), estimate at completion (EAC), estimate to complete (ETC) and planned value (PV) are budget related statistics. The statistics is an accurate way to track trends with project budget and timelines. For example, the CPI can show if the project is trending over-budget or under-budget and SPI can show if the project is on time, behind or ahead of schedule. The project manager can then allocate more or less resources or budget depending on critical path items. Interpretation of EVM Statistics – Case Study Currently, the project is well over budget for the month of June and July for both GUI and product management as seen in Figure 1 below. The timeline for the project seems to be on track except for some minor fallbacks like the GUI POS and GUI consulting company roll up which started in the month of July. The project seems to be over budget due to trying to hit the project timelines as the schedule impact seems to hit 100 percent even though the cost impact in the 80 percentile for both GUI and Product Manager. This is reflected in the ABC Consulting Company as they went over budget by $1,764,280 just in the month of July but their schedule impact was
still at 100%. This is also reflected in the control ratio which is determine by the SPI multiplied by the CPI. This gives an overall aspect of the portions of the project and how it’s performing. The desired control ratio is 1 with less than 1 meaning over budget and behind in the timeline. Over 1 means the project is ahead of schedule and the budget is underspent. EVM Figure 1: Example of GUI Project Schedule and Cost Impact – IT Staff EVM statistics provides an accurate and objective view of the project is doing with budget and schedule. (Lockhart, 2023) As you can clearly see in Figure 1 above that the budget is going over but the project schedule is on track showing that possibly that more money is being spent to hit project deadlines. The statistics can give accurate progress of the project throughout the project and can adjust funds and time where the project needs it most in order to hit both cost and schedule. (Breuker, n.d.) Role of EVM Principles EVM statistics provides objective measurements to the project by providing a percentage of progress completed and can help assess risk within the project. (Breuker, n.d.) In particular,
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