Binoy Lobo(u113148) Mamsha Rath(u113149) Mayank Srivastava(u113150) Md. Ali Tabish(u113151) Meenakshi Behera(u113152) Melisha Ghosh(u113153) In 2003, Franklin won an 18- month labor intensive product development contract by Spokane industries It was a cost reimbursable contract Cost target of $2.66 million and fixed fee of 6.75% on the target Contract required usage of Earned Value cost Schedule report which was new to Franklin First contract by Spokane Industries that was a cost reimbursable contract Franklin Electronics Management Group Project Manager Assigned by Spokane Local cost Accounting Department was set up 2 line manager were appointed Work Breakdown Structure 45 work packages 1 st four moths : 4 work packages to be implemented
Fewer Interchange meeting Implementation of earned value measurement Spokanes faith in EVM to get necessary and meaningful information
The vice presidents comments are reflective of the project status derived from data computed using the EVMS The trend identified through this method is reflective of actual cost overruns and schedule slippage The statements are not totally accurate The president failed to analyse the variance the variance Cost Variance CV = BCWP(EV) - ACWP(AC) Schedule Variance (SV) = BCWP(EV) - BCWS(PV) The Cost Variance does not increased by 78%
The Schedule Variance does not increased by 45%
To complete the analysis of the status report, it is must to include Budget at completion (BAC) Estimate at completion (EAC) the Critical Path. Budget at Completion The budget at completion is the sum of all BCWS allotted to the project
here it is 121k for end of month 2 and 299k for end of month 3 Estimate at Completion It is the sum of all direct and indirect costs to date plus the estimate of all authorized work remaining
EAC for month-end-2= 139.82 and EAC for month-end-3= 328.429k Franklin Electronics needs a better understanding of EVMS. Earned value measurement reports need to include other project related parameters such as Project Plan Evaluate and manage the project Updated throughout the life-cycle of the project Recourses Needed Capital and Human Resources
Percentage of Work Completed Report about the completed work and current status The PERT network Diagram Earned Value Measurement Schedule Variance (SV) Measurement of the schedule performance for a project. Gives an idea whether project is ahead or behind the baseline schedule. Cost Variance (CV) Measurement of the budget performance for a project. Tells the management whether project is above or below budget. 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. Reports printed out from EVM system Performance Reports Indicate physical progress till date Status Reports Analyze project progress till that point. Calculate SV & CV Projection Reports Calculate SPI, CPI as well as any other forward- looking projection Exception Reports Identify exceptions, problems or situations that exceed the threshold limits on such items as variances, cash flow, resources assigned etc Franklin Electronics was implementing EVMS for the first time The status report prepared by them was extremely simple and should have included more details regarding the project like percentage of work completed. Elements of critical path could have been employed to build a project schedule model. EVMS is just a tool to analyze the progress of a project EVMS only covers cost and schedules and, therefore, no quality control is factored into EVMS EVMS does not tell the whole story on evaluating a project and might not accurately represent what is necessary for a project to achieve specific functionality Spokane Industries decision to rely only on the EVMS reports was a big NO!! The EVMS reports could have been used by both Spokane Industries & Franklin Electronics to discuss matters which are hampering the project on the table & come out with mitigation plans Advantages of EVM over meetings Saves time Gives a more detailed information about the whole project Would give information via the earned value status reports For Franklin Electronics EVM is a new concept Cost Accounting group not happy to learn EVM EVM would mean lack of communication For Spokane Industries Assigned a consultant to Franklin Had tremendous faith in the ability of EVM Did not mention EVM would be a part of all contracts To continue the contract and discuss the current situation in details Give a complete status report like performance reports, Status reports Rearrange the schedule Continue with interchange meetings for first few months till Franklin is familiar with EVM. Thank You !!!