BUS 517 Discussion post responses.
Respond to the colleagues posts regarding:
Discussion: Educating Your Business Sponsor on EVM
Your Project Sponsor pulls you aside and admits that he has no idea what earned value management concepts (EVM), such as AC, BCWP, and EV mean; he is only concerned that you deliver the project ahead of schedule and under budget. Using the information covered from your readings and other activities, develop a project to educate him, including which EVM performance measures you would educate him on. Provide a rationale for your selection of topics.
BSs post states the following:
Earned Value Management, or EVM, is a project management tool used to measure project progress and performance in terms of the three core PM elements: scope, time, and costs. Its usefulness is in that it provides quantitative data for project decision making, especially in project forecasting. Managers use the EVM to develop accurate, objective forecasts and can use this tool to determine problems early on and make adjustments before the project derails. EVM implementation includes a project plan that identifies the required work, a valuation of planned work, as well as metrics for quantifying the accomplishment of work. In other words, EVM uses variances in projects based on the comparison of worked performed (EV) and work planned (PV).
To explain this to a project sponsor who does not fully understand the concept, I would begin by explaining that we start with a budget baseline, the PV, which serves as a reference point for all budgeted activities. The next step is to calculate actual costs of the work completed (AC). We multiply these cost by the % complete of actual work, which leads us to earned value (EV). Now we can go ahead and compute the schedule variance (SV) and cost variance (CV) and use these metrics to compare the earned value with the expected schedule value and the earned value with actual costs.
SV = EV – PV
CV = EV AC
The schedule variance tells us whether the project is running early, on time, or late. The cost variance tells us whether the work accomplished costs more or less than planned. In an ideal situation, both the SV and the CV are positive it means that the project is on track to be on time and on budget.
These metrics can also be used to calculate performance indexes such as the scheduling performance index
SPI = EV / PV
And the cost performance index
CPI = EV / AC
If the index equals 1, it means the project is on cost / on schedule. An index < 1 indicates the project runs over cost / behind schedule.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more