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488
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
docx
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7
Uploaded by DoctorBraveryDeer6310
1
Project Analysis Report
Web Design Project: Performance Analysis Summary
Baseline
The baseline outlines the auto-scheduled tasks within the Acme Widgets Inc. New Website Project. The project duration spans 12
1
2
days
business days
. The total project cost was projected at $
165,860
158,900
.00
.00
, with actual costs incurred at $
109,580.00
109,460.00
. Several key milestones and corresponding tasks are defined within the project schedule. For
2
instance, the Conduct Client Kick-off Meeting Task 1 outlines three specific steps: Review requirements with the client Task 1.1, Confirm deliverables Task 1.2, and Client Acceptance - Milestone Task 1.3. Each of these tasks corresponds to specific budget allocations.
Additionally, the breakdown of various development and implementation stages Tasks 2, 3, 4, 5, etc. is detailed, specifying different subtasks under each phase. These tasks include activities like website development, procurement of IT system equipment, installation and configuration, data migration and testing, bug fixes, staff training, deployment, monitoring, and project closure.
Metrics
The critical performance metrics, including Planned Value or PV, Actual Cost or AC, and
Earned Value or EV, were calculated. The Planned Value, representing the approved budget, was
$
110,540.00
135,950
.
82
while the Actual Cost incurred in complet
ed
ing the
w
ork so far was
ork is
$109,
46
58
0.00. The Earned Value, showing the actual work accomplished, summed up to $
109,
58
0
114,500
.00
.
Based on these calculations, the Schedule Performance Index or SPI was determined to be 0.84
0.99
. The Cost Performance Index or CPI was 1.0
4
, indicating that the project is following the baseline budget.
Importance of the Metrics
3
The importance of metrics like the Cost Performance Index and Schedule Performance Index in a project analysis cannot be understated
overstated
. They provide critical insights into a project's health, offering an objective assessment of how well the project is performing in terms of costs and schedule adherence (PMI, 2017).
The CPI is a measure of how efficiently resources are being utilized concerning the budget. A CPI value greater than 1 indicates the project is under budget, meaning that the project
is spending less than planned to achieve the current level of completion. On the other hand, a CPI value less than 1 signifies that the project is over budget, and the cost of the work accomplished is more than initially forecasted (PMI, 2017). It's crucial because it aids in financial forecasting, cost control, and ensuring optimal resource allocation to complete the project within the budget.
The SPI measures the project's schedule efficiency. An SPI greater than 1 indicates that the project is ahead of schedule, with work being completed faster than planned. Conversely, an SPI value below 1 suggests that the project is falling behind schedule, indicating inefficiencies in
progress (Rojas et al., 2021). SPI helps project managers understand how effectively they are progressing towards project milestones and assists in managing resources and schedules to ensure timely project completion. In project management, the evaluation of financial and schedule performance is essential for ensuring the project's overall health and success. Two key ratios, the Cost Performance Index
(CPI) and the Schedule Performance Index (SPI), play a pivotal role in providing a comprehensive snapshot of a project's status. In the context of a Web Design project, the CPI of 1.04 indicates that the project is slightly under budget
at 6%
. This means that the costs incurred are favorable compared to what was initially planned, showcasing effective cost management.
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Additionally, the SPI of 0.84 suggests that the project is behind schedule but remains close to the
initial baseline, indicating a relatively minor deviation in the timeline.
These favorable metrics, as indicated by the CPI and SPI
, collectively highlight the robust financial performance and efficient resource utilization of the Web Design project. The CPI value above 1.0 signifies that cost efficiency is being maintained, and the project is operating within or slightly under the budget constraints. Simultaneously, the SPI value close to 1.0 indicates that the project is trailing the schedule but is not significantly deviating from the original timeline. This insight into the project's financial and schedule health enables project managers and stakeholders to make informed decisions, implement corrective actions if necessary, and ensure the project stays on track for successful completion (Rojas et al., 2021).
Both ratios are crucial because they provide a clear snapshot of a project's financial and schedule health. In the case of Web Design project, a CPI of 1.0 indicates cost is on budget, while an SPI of 0.
99
signifies slightly behind schedule, but remarkably close to initial baseline. These favorable metrics reveal that the project is on budget and slightly behind schedule, reflecting robust performance and efficient resource utilization (Rojas et al., 2021). It means that for each dollar planned, the project is completing $1.0 worth of work, indicating excellent efficiency and financial management, which is essential for successful project completion.
Calculations
To calculate the Estimate to Complete or ETC the following formula is used ETC= (
E
B
AC
– AC)
– EV) / CPI
, which was estimated to be $
56,280.00
49.099.26
. This signifies the
remaining expected expense to complete the project work. To calculate the Estimate at Completion or EAC the following formula is used EAC= BAC/CPI which was computed at $
158,559
.
165,860.
26
00
representing the revised total estimated cost for the project,
5
considering the variance. The Variance at Completion or VAC was calculated as $
7,300.74
0.00 depicting a zero variance between the budgeted and actual costs (PMI, 2017).
Performance
For a project such as Web Design, maintaining the positive performance indicated by the CPI and SPI requires a continued focus on specific actions and strategies. V
Given that the project is under budget and ahead of schedule
, v
igilance in monitoring costs, resources, and schedule adherence is crucial. On-going cost control is vital to sustain the financial efficiency that the CPI reflects. This involves regular reviews of expenditures, keeping track of resource utilization, and evaluating the variance between the budgeted and actual costs. By maintaining a watchful eye on these cost factors, the project can ensure that it continues to operate efficiently and within budget constraints (Capece & Di Pillo, 2021).
Similarly, while the SPI shows that the project is making progress ahead of schedule, it is important to consistently track tasks and milestones. This includes evaluating
task completion rates, identifying potential bottlenecks, and assessing the resources allocated to meet these deadlines. Adjusting schedules, redistributing resources, or providing additional support to areas falling behind can help maintain this positive schedule performance and ensure a successful project outcome (PMI, 2017).
6
Moreover, strategic adjustments in timelines, resources, and task priorities are necessary to optimize outcomes. These adjustments might involve reassigning resources, re-
evaluating task dependencies, or refining the project plan to ensure the continuation of the positive trend in performance (PMI, 2017).
By focusing on these actions and employing a vigilant and adaptive approach, the Web Design project will be better equipped to maintain its positive performance trends, ensuring an efficient use of resources and timely delivery of the final product.
Comments on the project schedule: The headings and subheadings provide a logical outline for the project, the tasks appear reasonable for the project (although note my comment earlier about the best practice of starting each activity description with a verb), the durations (other than for mileston
es) are appropriate, the logical connections are only among activities, a resource library exists and resources are applied to activities, costs are assigned to each activity
, and a baseline was established
.
The Week 3 assignment description called for an analysis of the critical path, and I don’t see the critical path explained or analyzed here. One of the risks I see in your project is that virtually all activities were scheduled as finish-to-start, in almost exclusively a single series, meaning that if any one task was delayed or took l
onger than expected, the likelihood of the end date being pushed out was very high. The critical path was not highlighted in the project schedule.
Since you have covered a significant amount of the Wee
k 4 assignment work with this submission, I would like to see the group address the comments and feedback that I have provided here. You can submit essentially this same document, edited and updated as appropriate
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to address my comments; the same goes for the project schedule.
Please reach out if you have any questions about how to proceed for the Week 4 Group Assignment.