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Unformatted text preview: e closely, the indication is that the project is progressing as planned. If they are not, corrective action may need Page 110 to be taken. To determine where corrective action is needed, one relies on variance analyses, described in Section 4.3. The summary-level control packages where the actual expenditure and earned value curves are tracking the baseline closely can be considered to be "on schedule" and "on budget." It is possible to plot these curves for each control package in the WBS from the data that the Modern Project system keeps in its database. Some projects try to do this for the higher-level control packages. But, rather than analyze lots of charts, it is usually a lot simpler to determine the problem control packages using variance analysis. This is done by looking at a report that lists all the cost and schedule variances hierarchically in accordance with the WBS. Project management then takes action on the exception control packages (the ones with excessive cost or schedule variances) and assumes that all the others are under control. By using this management-by-exception approach, the project manager can focus on the important problem areas and not be inundated with minor problems. To determine the exception control packages, project management uses the Cost and Schedule Variance Report discussed in Section 4.3.3. This report reveals which work packages have excessive cost and schedule variances and sums these work package variances to produce the corresponding variances for all the control packages in the WBS hierarchy. 4.2— Performance Evaluation Reports There are several performance reports that project management needs and that Modern Project can produce. They include the following: a. Earned Value Report (Figures 4 -2 and 4-3) b. Cost and Schedule Variance Report (Figure 4 -4) c. Schedule Performance Trend Chart (Figure 4- 7) d. Productivity Report (Chapter 5) We discuss the Earned Value Report in this section. The Cost and Schedule Variance Report and the Schedule Performance Trend Chart are discussed in the sections of this chapter where they arise in the discussion. Productivity measurement and the Productivity Report are a big topic that we will save for Chapter 5. The Earned Value Report for the example project at a later date is shown in Figure 4- 2. We exhibit it now so the reader can see what a representative earned value report looks like. The Earned Value Report for the example project based on the data we have entered so far is shown in Figure 4-3. The Earned Value Report is the most fundamental technical tool the project manager has for evaluating performance on the project. It can be produced by clicking on the Earned Value Chart button on the Main Menu. We have already discussed the mechanics of producing the Earned Value Report, and from that discussion it is clear that Figure 4-2. Earned Value Report (later data) for example project. Figure 4-3. Earned Value Report (earlier data) for example project. this report would be difficult to...
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This note was uploaded on 01/11/2011 for the course ACC 9 taught by Professor Yeetan during the Spring '10 term at Sunway University College.
- Spring '10