Group 9 - Topic G

Group 9 - Topic G - BACKGROUNDSTORY BACKGROUNDSTORY...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
BACKGROUND STORY BACKGROUND STORY Spokane Industries Spokane Industries Franklin Electronics Franklin Electronics 18-month product development contract Cost target: 2.66 million Fixed fee: 6.75% of target Use of  formalized  Project  Management Earned  Value  Cost  schedule  Reporting Interchange  meetings 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SITUATION SITUATION  4 hour seminar was held for earned  value management  Management Group    - A project manager assigned by Spokane    - local cost accounting department    - 2 line managers    Work breakdown structure: 45 work packages     -  1 st  four months: 4 work packages were implemented
Background image of page 2
    Are the vice president’s comments about the cost and schedule variance correct  QUESTTON 1
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EARNED VALUE COST REPORT EARNED VALUE COST REPORT At the End of Month 2 At the End of Month 3 Work  Packages  Cost  Variance Schedule Variance  Cost  Variance Schedule  Variance A - 6K - 8K - 7K - 12K B - 2K - 1K -3K - 3K C - 3K - 2K - 5K - 4K D - 3K - 20K - 10K - 26K  Stopped immediately by the Vice President for engineering of Spokane  Prediction by the Vice President:    - Cost Overrun = 78%   Total 500% Cost Overrun     - Schedule Slippage = 45%   Total 1 year Schedule Slippage
Background image of page 4
THE REASON OF CANCEL THE  THE REASON OF CANCEL THE  CONTRACT: CONTRACT: • The cost variance has increased by 78%     from $14000 to $25000 • The schedule variance has increased by     45% from 31000 to $45000  
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What information did the vice president fail to analyze QUESTTON 2
Background image of page 6
VICE PRESIDENT VICE PRESIDENT Cost variance (CV)= BCWP(EV) – ACWP(AC) Schedule variance (SV) = BCWP(EV) – BCWS(PV) Work  packages PV EV AC CV SV PV EV AC CV SV A 38K 30K 36K -6K -8K 86k 74K 81K -7K -12K B 17K 16K 18K -2K -1K 55K 52K 55K -3K -3K C 26K 24K 27K -3K -2K 72K 68K 73K -5k -4K D 40K 20K 23K -3K -20K 86K 60K 70K -10K -26K FAIL TO ANALYZE: FAIL TO ANALYZE:  totals at end of month 2   totals at end of month 3 
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The cost variance does not increase 78% The schedule variance does not increase  45% VICE PRESIDENT VICE PRESIDENT FAIL TO ANALYZE: FAIL TO ANALYZE:
Background image of page 8
   What additional information should have been included  in the status report QUESTTON 3
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ADDITIONAL INFORMATION  ADDITIONAL INFORMATION  Project Plan      - evaluate and manage the project    - updated throughout the life-time of the project Resource needs     -   Capital and human resources    - List the following resources           expose and ensure the resource needs to meet it’s  requirement 
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/02/2011 for the course ME ISE441 taught by Professor W.k. during the Spring '11 term at NYU Poly.

Page1 / 35

Group 9 - Topic G - BACKGROUNDSTORY BACKGROUNDSTORY...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online