On regular basis the project manager raj will produce

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On regular basis the project manager Raj will produce an Earned Value Analysis Report, which will identify cost variances for this project, the information’s about this report are in the items below: Units of measure:
Performance of the project will be measured using Earned Value Management. The following four Earned Value metrics will be used to measure to projects cost performance: - Schedule Variance (SV): Measure the schedule performance of the project. - Cost Variance (CV): Measure the budget performance of the project. - Schedule Performance Index (SPI): Measures the progress achieved against that which was planned. - Cost Performance Index (CPI): Measures the value of the work completed compared to the actual cost of the work completed. Level of precision and accuracy - SPI SPI is calculated as EV/PV. If EV is equal to PV, the value of the SPI is 1. If EV is less than the PV then the value is less than 1, which means the project is behind schedule. If EV is greater than the PV the value of the SPI is greater than one, which means the project is ahead of schedule. A well performing project should have its SPI as close to 1 as possible, or maybe even a little under 1. - CPI CPI is calculated as EV/AC. If CPI is equal to 1 the project is perfectly on budget. If the CPI is greater than 1 the project is under budget, if it’s less than 1 the project is over budget. Corrective action: If the SPI or CPI has a variance of between 0.1 and 0.2 the Project Manager must report the reason for the exception. If the SPI or CPI has a variance of greater than 0.2 the Project Manager must report the reason for the exception and provide management a detailed corrective plan to bring the projects performance back to acceptable levels. Organization cost management procedures There a procedure for control the changes in the budget that is based on the follow steps: - Identify and assess the change from the EVA report. - Fill out a change request form and send to the project manager. - The project manager will review and request modifications if necessary. - The project manager and project director will jointly evaluate the change. - The change can be approved/ approved pending additional supporting documentation/ denied. - The project manager will document the change outcome necessary in the change request report.
Control thresholds The Control Thresholds for this project is a CPI or SPI of less than 0.8 or greater than 1.2. If the project reaches one of these Control Thresholds a Cost Variance Corrective Action Plan is required. Rules of performance measurement The project manager's report on budget performance and control will be prepared monthly. This report will be sent to the customer and should always be positive. In case of unsatisfactory results, the client must be reported, however the corrective action plan must be presented at the same time. Reporting formats Reporting for cost management will be included in the monthly project status report. The Monthly Project Status Report will include a section labelled, “Cost Management”. All cost variances outside of

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