From the above graphs, project C did very well, followed by project A, project D came third which was then followed by project B, the worst performing project was D
The amount of work being completed on a certain project for every unit of cost is represented by the cost performance index. The project will be doing well against the budget when value of CPI is above one. Schedule performance index represents how close actual work is being completed compared to the schedule. The project will be regarded to be doing well against the schedule if the value is above one (Kerzner, 2009). Looking at the value I have gotten in the calculation, I will be able to ascertain which projects did well against the budget and why. At the same time, I will be able to know with project performed well against the schedule and why. With all this information, I will be able to come up with recommendations since I will be able to use the information to find out the projects that will be performing against the underperforming projects.
Schedule Variance and Cost Variance
Schedule variance and cost variance are key parameters in measuring the progress of any given project. Cost variance tells the project managers if the project is under or over the budget at any given point of the project management process. When project managers want to know if they are behind or ahead of the schedule, it is schedule variance that informs them (Kerzner, 2009).The two terms relate to one another since they act as parameters that are used to measure the progress of the project.
Advantages and Disadvantages of Earned Values Metrics
The metrics play an essential role in determining the current status of the project; they can warn the project manager during the early stages of the project if the project is not on track and approximate the total cost and time frame. The metric measures every piece of work that has already been completed in the entire project and calculates if the project will be completed within the stipulated time frame. Most managers consider CPI to be the most valuable earned value management metric. The cost efficiency of the entire project is measured by value management metric the metrics. Additionally, the metrics helps to tell you if the project has passed the budgeted amount or is under budget at any particular time during the process. The disadvantage of using earned value metrics is that it does not put quality into the consideration, the project may be doing well in terms of time and budget but the quality is below the required standard (Dayal, 2008).
Challenges of Obtaining Earned Value Metrics
Lack of applying the correct measures to capture performance; the results of any given project will not be accurate if the project plan is composed of significant law level effort. Individuals working on the project should be competent in their works in order to provide their best on the project.
Variances are not good in project management. Most programs cannot reveal the cost variances or the schedule since they believe that communicating a result especially if the project is not performing well is not good for the project. The information should only be available to the project manager but not everyone in order for the manager to put in place required measures (Dayal, 2008).
While using earned value metrics, project manager should concentrate on quality rather than focusing on the budget and if the project is performing well. Quality is an essential criterion in any project and it should be focused on.Projects B and D did not do well as both of them were behind the schedule and a lot of money had been spent. The company should look at the factors that led to such situation to happen.
Kerzner, H. R. (2009). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley & Sons.Dayal, S. (2008). Earned Value Management Using Microsoft Office Project: A Guide for Managing Any Size Project Effectively. J. Ross Publishing.
If you are the original author of this essay and no longer wish to have it published on the SuperbGrade website, please click below to request its removal:
- Literary Analysis Essay on Bell Hooks Bone Black: Memories of Girlhood
- Introduction and Strategic Analysis: DreamWorld in Theme Park
- Play in early childhood
- Essay Sample on Treasury Bonds
- Airport Duty-Free Shopping App
- What Triggers Human Behavior
- Exhibition in Lakeview Museum Center
- Qualities of a Good Managers
- Honor Codes and Honor Systems
- Offshore Drilling and Its Discoveries Within Canada
- Theory About 9/11
- MICE Portfolio in Singapore