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Final Exam

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1) You have a manager who informs you that the year long project (linear spend plan) they are executing currently (use today’s date) has spent half their budget of $500K, and they show a CPI of 1.16 and an SPI of 0.82. What is your prediction for the project? (On what date will this project finish and what is your ETC?) Why do you believe this to be true? What do you intend to do with the project team tomorrow?

Prediction for the project can be calculated by the following equations:

CPI = EV (earned value) / AC (Actual Cost)

1.16= EV/ $250,000

Therefore, the Earned Value (EV) = $290,000

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SPI= Earned Value (EV) / Planned Value (PV)

0.82= $290,000/ PV

Therefore, The planned value (PV) = $353,658

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We can expected the total project cost by using the following formula:

Estimate at completion (EAC) = Budget at completion (BAC)/ CPI

EAC= $500,000/1.16

EAC= $431,034.48

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Calculating the variance at completion (VAC) to determine how much the project over and under the budget

VAC= BAC-EAC

$500,000 - $431,034.48 = $68,965

Therefore we expect the project to be about $69K under budget.

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Estimate to complete (ETC) how much more will it cost to finish this project.

ETC= EAC-AC

ETC= $446,428.5-$250,000 = $181,034

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Determine the project is under or over budget.

Cost of Variance (CV) = EV- AC

CV= $290,000-$250,000 = $40,000

Therefore, the project is under budget by $40,000

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The schedule variance (SV) = EV- PV

$290,000-$353,658 = -63,658

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The total duration to complete this project 5/10/2015 = Baseline duration / SPI

12 month /0.82 = 14.6 months

Approximately 2 month and 16 days behind schedule

Therefore, from today’s date 5/10/2015 the project will be completed on 7/26/2016

-I strongly believe it is correct because CPI plays fundamental role in measuring the efficiency of the project. If the CPI of a project is one, this means that the actual project costs have not exceeded the budget costs. On the other hand, if the SPI less than one indicates the project is behind schedule. Earned value analysis (EVM) is a valuable technique because it provides important forecasting information that is going to help project managers control the project in terms of cost and schedule in order to meet the project goals and deadlines.

-I intend to bring back the project on the track, when the project behind the schedule I need to hold a meeting with all the stakeholder of the project to determine the possible causes of this delay. When a meeting is held, various consultations are made to bring into line and track the lost timeline of the project. Stakeholders are also informed on the time that the project is intended to be complete and advised on the strategies to achieve the project’s goals within the targeted time.

2) You have been assigned a new project within your firm. You have been given the following schedule, which was prepared by a manager not familiar with the project details. (You can assume the task descriptions are correct) What steps do you intend to follow to maximize your chances of project success?

First, I am going to examine each task, and estimate the timing required for each task. Then, I will compare it with the time that the manager provided. Next, I will ensure the availability of sufficient resources required in carrying out of the project tasks without difficulties within the time frame. If the project is affected and will not be completed on the time assigned, I will inform the manager that the project wills not complete in due time. This is accompanied by a clear outline of the reasons as to why the completion of project in not likely to be achieved within the schedule time. If the manager feels that there is possibility of accomplishing the project tasks within the schedule time frame on my plan or assign the project to another resource that can get the work done in twenty-six days.

3) You are the Project Manager of a typical project within your company. You have five indirect reports working on this project, all from different departments of the organization. Three of these reports are providing exceptional results, but two members of the group are not producing. Overall your project is still on schedule and budget, thanks to your best people. What do you intend to do about this situation?

In this case, there is need to hold frequent reviews meeting where the members informed on the project status. Also, I will review the forecast of the project completion and remind the team about the goals and the project objectives. For members who are not performing as well as expected to see if they are facing various shortages or other problems that in my capacity to control or he/ she should make predominant efforts to align these employees with set organizational goal and objectives.

4) You have read the article entitled Macgregor, and would like to implement the managerial system proposed in the publication. Explain how you will implement the technique in a manufacturing facility similar to his, noting time to implement, personnel requirements and productivity of the plant during the transition.

Macgregor’s managerial system has had impact on management. His style was when work aligned with human needs and motivation employee productivity would increase.

My managerial implementation techniques would be:

-Treat staff as responsible and valued employees.

- Eliminate the number of levels of management, and delegate the responsibility and decision to the staff.

- Extend the scope of employee's job.

- Consult employees for making decision.

- Provide a plan to develop strategies, conditions and methods of operation so employees can reach their goals.

- Staff must consider themselves as interacting groups of people with supportive relationships to each other.

- Provide enjoyable workplace environment.

-Make individual and Team Incentive plan.

I believe that Macgregor techniques are valuable because they make people take ownership of their roles and also work harder to come up with effective solutions to resolve any issues they face or randomly come up.

5) For each of the project life-cycle phases, identify the three things that in your judgment you must consider for that phase in order to maximize your project success. (As an example, in the planning phase you would likely focus on the Specification, Schedule and Budget).

I learned in a lot of very great concepts in this class, and I understand the project life-cycle phases that are basically very important for each project. In my opinion, the most important three things in each phase are:

In the initiation phase:

-We know the project needs

-Identify the stakeholders for the project.

-Organize how the project fits in the organization.

In the planning phase:

-Creating network diagram,

-Creating (WBS) the work breakdown structure.

-Risk analysis and make plan to mitigate risks.

In the execution phase:

-Identifying chaos in the project,

-Building the organizational structure.

-Building trust between the project team members are the most significant components in this phase.

In the control phase:

-The cost control. SPI and CPI values are highly utilized in this phase to evaluate the performance of the project.

-Managing conflict between personal also is very important skill that improve the project's chance to success.

-Time management is the one of the core concept of the controlling phase in the project.

In the closing phase:

- Announcing the project result.

- Telling the employees of the organization what the organization has learned from this project,

- Making the project report a source of the organization's employees who will involve in in project in the future to avoid some mistake that could happen again.

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