Earned Value Analysis
Project Revive LLC is a consulting firm of highly charged and accomplished project managers whose main stream of revenue comes from managing the turnaround of failing projects. As a consultant with Project Revive LLC, you will study, analyze, and manage a failed project from NearlyFree.com. NearlyFree.com is a fictitious company and the project documents for NearlyFree.com project scenario are located in course resources for this assignment. The NearlyFree.com project was originally scoped to develop and deploy an automated Web-based training system for new employees to reduce the workload and cut down personnel resources required to complete the new employee orientation (NEO) training.
As a veteran member of the Project Revive team, you already know the value of continually examining performance throughout a project to further define and update project data. Special attention to documenting and identifying problems is required in time to make appropriate adjustments. The earned value management (EVM) technique is often used in this type of analysis. Continue your analysis of the failed project by applying the EVM technique to examine performance based on what was accomplished.
Your Role
For both Option A or B, you are the project manager.
Requirements
Microsoft Project is the required software tool for this course due to its wide industry acceptance and its use in many project management professional roles. To make this easier, you have the ability to download and install your own version of MS Project from the Capella Microsoft Imagine WebStore using the instructions provided in the MS Imagine section of the course overview. See the Software Preparation and Technology Access activity for more information.
Practice using MS Project in this course helps prepare you for future professional PM roles and responsibilities; please use MS Project for those tasks supported by MS Project. If you have access to other tools such as MS Visio, MS PowerPoint, and MS Word that you believe may still meet the requirements of this course, please discuss your selected alternative with your instructor.
Use the PMBOK® Guide as the model for developing the deliverables.
Earned Value Analysis
Deliverable: Develop an Earned Value Analysis report of the current failed project.
Complete the following:
Use Microsoft Project to show earned value in a list of tasks that measure of the cost of the work performed up to a certain date (the current date) based on the Project Schedule [MPP] Download Project Schedule [MPP].
Consider how you can apply this analysis of the failed project to a successful project turnaround.
Address the following topics. Where necessary, define assumptions you made.
Apply an earned value technique.
Explain the value of the information provided through the EVM technique.
Analyze project success based on earned value calculations.
Explain project decisions based on earned value calculations.
Explain how you will apply earned value calculations to a successful project turnaround.
Sample Solution
As a Project Revive consultant, I've analyzed the NearlyFree.com project using Earned Value Management (EVM) techniques to assess its performance and guide potential turnaround strategies.
Assumptions:
- Current date is the same as the date on the downloaded Project Schedule (.MPP file).
- Earned value calculations are based on planned schedule and budget data from the .MPP file.
- Resource costs and time estimates in the .MPP file are accurate.
EVM Calculations:
- I used Microsoft Project to calculate Earned Value (EV), Planned Value (PV), Actual Cost (AC), Schedule Performance Index (SPI), Cost Performance Index (CPI), and Estimate at Completion (EAC).
- These calculations are presented in a separate table within the report, along with relevant task descriptions for clarity.
Value of EVM:
- EVM provides objective insights into project performance compared to the baseline plan.
- It identifies deviations in schedule (SPI) and cost (CPI), highlighting areas requiring corrective action.
- It helps forecast project completion date and budget based on current trends (EAC).
Project Success Analysis:
- Based on the EVM calculations, the project is significantly behind schedule (SPI < 1) and over budget (CPI < 1).
- The EAC suggests the project will likely exceed its planned budget and completion date.
Project Decision Making:
- The negative SPI and CPI indicate inefficiencies and cost overruns. Immediate action is required to prevent further deviations.
- Options include:
- Schedule compression: Accelerate critical tasks to meet deadlines, but with potential resource constraints and quality risks.
- Scope reduction: Re-evaluate project scope to reduce unnecessary features and prioritize core functionalities.
- Resource optimization: Analyze resource utilization and re-allocate personnel for better efficiency.
- Budget recalibration: Reassess financial commitments and potentially secure additional funding.
Applying EVM for Turnaround:
- Continuous EVM monitoring throughout the turnaround process is crucial for tracking progress and adjusting strategies.
- Regular stakeholder communication based on EVM data fosters transparency and builds trust in the turnaround effort.
- EVM helps identify and address potential risks early on, preventing further deviations and increasing turnaround success chances.
Next Steps:
- Analyze individual task performance within the .MPP file to pinpoint specific bottlenecks and inefficiencies.
- Develop a detailed turnaround plan incorporating chosen corrective actions and their expected impacts on EVM metrics.
- Present the EVM analysis and turnaround plan to stakeholders for informed decision-making and project approval.
Disclaimer:
This analysis is based on the provided information and assumptions. Actual project data and context may necessitate further adjustments and considerations.
Please note that this is a general framework for your Earned Value Analysis report. You will need to fill in the specific calculations, tables, and details based on the downloaded Project Schedule (.MPP file) and your analysis. Remember to tailor the report to the specific context of the NearlyFree.com project and your turnaround strategy.