Project Managing Process

PROJECT MANAGEMENT 2

Week Nine Activity

Jeremy Taylor

Strayer University

3 March 2022

Schedule variance = earned value – planned value.

SV = $600 - $540

SV = $60

Cost variance = earned value- actual value

CV = $600 - $650

CV = -$50

Cost performance index = Earned value/ actual cost

CPI = $600/$650

CPI = 0.923

Schedule variance is an indicator that tells how ahead or behind a project schedule is. According to our SV of $60. It means that more work has been done than the scheduled, so our project is ahead of the schedule.

Cost variance is a performance measure that assesses a project's financial performance. It compares the budget specified before the project started with what was actually spent. From our CV above which is negative $50. It means that our project is overspending and the project does not have enough excess funds to cover its overspending. It means that our project is over the budget by $50.

A cost performance indicator is a mechanism for measuring a project's cost effectiveness and financial efficiency. It can also be used to tell whether a project is over or under the expected budget. This method is used to show that for every money spent on the project, it determines how much one earns and therefore tells how well the project sticks to the budget. From our CPI of 0.93, it tells us that our project is over the budget. It means that the cost requirements for our project are deemed to be less than favorable. From our CPI it means that for every $1 spent, we receive $0.93.

Project management body of knowledge argues that the project was successfully finished once the specified objectives were met and all associated activities were performed. It also argues that When compared to other kinds of management, project management is distinguished by the fact that projects are time or milestone constrained. Closing duties include obtaining client acceptance, archiving documents, terminating contracts, analyzing lessons learned, and celebrating accomplishment with colleagues. Closing a project entails a mix of assurances that all work has been finished. All agreed-upon project management steps have been carried out, and official acknowledgement of a project's completion has been given, with everyone agreeing that it has been done.

References

Larson, E. W. (2020). Project Management: The Managerial Process (8th Edition). McGraw-Hill Higher Education (US)

Guide, A. (2001). Project management body of knowledge (pmbok® guide). In Project Management Institute (Vol. 11, pp. 7-8).