PM598 University of Phoenix Earned Value Analysis Resources:Project Management: The Managerial Process, Ch. 13Earned Value Story – Painting Your House – at

PM598 University of Phoenix Earned Value Analysis Resources:Project Management: The Managerial Process, Ch. 13Earned Value Story – Painting Your House – attachedReview my earned value story about painting a house. Analyze what happens when conditions change in a project and how changes affect the project plan. You can also “play with the numbers” to see what happens when the change changes.Prepare a 350 to 700 APA formatted paper (do not use memo format) which describes your observations about the usefulness of Earned Value, how it can be a useful project management tool, and what affect changes have on what the plan was versus what the actuals were at the end of the project.Painting Your House – Earned Vaule.docFormat your paper consistent with APA guidelines. Project: Painting the Exterior of Your Home
The exterior of your home requires painting. You have contacted several painting
contractors and obtained bids from three of them. You have selected a painting
company called “Better Late Than Never (BLTN). Their price is $1,500 (you
supply the paint) and they said it will take one week (5 week days at 8 hours per
day). BLTN will send two painters over this coming Monday morning to start the
job. You have an office party scheduled for this coming Saturday evening, so the
job must be completed on Friday evening 6:00 p.m. Although you have budgeted
$1,500 for the painting, you have agreed to pay BLTN any additional charges to
have the job completed this coming Friday evening 6:00 p.m.
Project Objective: Have the exterior of your home painted in 5 days at a
budgeted price of $1,500.00.
Project Organizational Statement: You, BLTN painting company owner, and
two BLTN painters.
Project Risks: Delays in completing the job due to adverse weather conditions.
Seller Contract Terms: Contractor price plus. Painter’s hourly rate is $18.75/hr
straight time and $25.75/hr overtime if required.
Project Schedule (fix duration variable resources):
Start
2 painters
start work
Friday
$1,5000
40 hrs
Monday
8 hrs.
Wednesday
Tuesday
8 hrs.
8 hrs.
Thursday
8 hrs.
8 hrs.
Performance
Measurement
#1
Performance
Measurement
#2
You will be using Earned Value to calculate the performance of your painting
project.
Earned Value is comprised of three factors:
1.) Budgeted Cost of Work Scheduled “budgeted cost of work planned” (BCWS)
2.) Budgeted Cost of Work Performed “budgeted cost of work completed”
(BCWP)
3.) Actual Cost of Work Performed “actual cost work completed” (ACWP)
Earned Value Calculations Page 1
Project: Painting the Exterior of Your Home
Four calculations are performed using these three Earned Value components:
Cost Variance (CV) = BCWP – ACWP
Note: Negative results indicate over spending
Cost Performance Index (CPI) = BCWP/ACWP
Note: Results less than (1) indicate poor cost performance
Schedule Variance (SV) = BCWP – BCWS
Note: Negative results behind schedule
Schedule Performance Index (SPI) = BCWP/BCWS
Note: Results less than (1) indicate poor schedule performance
It is Wednesday evening 6:00 p.m. and it is time to take your first performance
measurement.
Start
2 painters
start work
Monday
8 hrs.
Wednesday
Tuesday
Rained all day
8 hrs.
Friday
$1,5000
40 hrs
Thursday
8 hrs.
8 hrs.
Performance
Measurement
#1
CV = BCWP – ACWP = ($1,500 X 2/5) – ((($18.75/hr X 2 painters) X 8hrs ) X 2
days)
CV = ($1,500 X ,4) – ($300 X 2)
CV = $600 – $600
CV = 0
Note: Negative results indicate over spending
CPI = BCWP/ACWP = $600/$600 = 1
Note: Results less than (1) indicate poor cost performance
Earned Value Calculations Page 2
Project: Painting the Exterior of Your Home
Start
2 painters
start work
Monday
8 hrs.
Wednesday
Tuesday
Rained all day
8 hrs.
Friday
$1,5000
40 hrs
Thursday
8 hrs.
8 hrs.
Performance
Measurement
#1
SV = BCWP – BCWS
SV = ($1,500 X 2/5) – ($1,500 X 3/5)
SV = $600 – $900
SV = – $300
Note: Negative results behind schedule
$300/ ($18.75/hr X 2 painters) X 8hrs = $300 / $300 = – 1 day behind schedule
SPI = BCWP/BCWS
SPI = $600 / $900
SPI = .67
Note: Results less than (1) indicate poor schedule performance
Performance Measurement #1 Final Results
CV = 0
CPI = 1
SV = – $300 (1 day behind schedule)
SPI = .67
Earned Value Calculations Page 3
Project: Painting the Exterior of Your Home
It is Friday evening 6:00 p.m. and it is time to take your second performance
measurement.
Start
2 painters
start work
Friday
$1,5000
40 hrs
Monday
8 hrs.
Wednesday
Tuesday
Rained all day
Thursday
8 hrs.
8 hrs.
8hrs + 4hrs
overtime
8 hrs.
8hrs + 4hrs
overtime
Performance
Measurement
#2
CV = BCWP – ACWP = $1,500 – ((($18.75/hr X 2 painters) X 8hrs ) X 4 days) +
((($25.75/hr overtime X 2 painters) X 4hrs) X 2 days)
CV = $1,500 – ($1200 + $412)
CV = $1,500 – $1,612
CV = –$112
Note: Negative results indicate over spending
CPI = BCWP/ACWP = $1,500/$1,612 = .93
Note: Results less than (1) indicate poor cost performance
SV = BCWP – BCWS
SV = $1,500 – $1,500
SV = 0
Note: Negative results behind schedule
SPI = BCWP/BCWS
SPI = $1,500 / $1,500
SPI = 1
Note: Results less than (1) indicate poor schedule performance
Earned Value Calculations Page 4
Project: Painting the Exterior of Your Home
Start
2 painters
start work
Friday
$1,5000
40 hrs
Monday
8 hrs.
Wednesday
Tuesday
Rained all day
Thursday
8 hrs.
8 hrs.
8hrs + 4hrs
overtime
8 hrs.
8hrs + 4hrs
overtime
Performance
Measurement
#2
Performance Measurement #2 Final Results (End of Project)
CV = –$112
CPI = .93
SV = 0
SPI = 1
Earned Value Calculations Page 5

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