Questions and Topics We Can Help You To Answer:
Paper Instructions:
**Part 1: Respond in 200 Words to This Question Using at Least 1 Reference:
Your Project Sponsor pulls you aside and admits that he has no idea what earned value management concepts (EVM), such as AC, BCWP, and EV mean; he is only concerned that you deliver the project ahead of schedule and under budget. Using the information covered from your readings and other activities, develop a project to educate him, including which EVM performance measures you would educate him on. Provide a rationale for your selection of topics.
**Part Two: In 125 Words, Respond to the Response to the Above Question Written by a Peer by asking questions and providing insight to further the discussion:
The Project Sponsor is a Project Manager’s direct line to the upper management of the organization. It is vital to the success of the project that the manager have the buy-in of the sponsor. If timelines need to be changed or resources reallocated the manager must know that the sponsor has his best interest at heart. In this scenario the Project Sponsor has asked for clarification so the Project Manager must take the time and make sure there is no confusion.
Earned Value Management is the understanding and controlling the budgeted cost of the work performed. It is important to understand these concepts as they drive the budget of a project.
Like with the schedule and preparing for the unknown the budget must provide the same guidance. The WBS or work breakdown structure provides an outline of the schedule and the budget. When seeing these two elements of a project together you can start to see where tasks can be combined, deleted, or added and adjust accordingly. The EV of the project is included before the big picture is seen. It is worked out at each step. As the project starts to take shape and the work begins the AC or actual cost of the work becomes apparent and the CV or cost variance can be calculated (CV=EV-AC).
Understanding where the budget comes from and at what stage of the project it is evaluated will help the Project Sponsor to relay the important information to the upper management team. Keeping the project and the team in good standing while the work gets done, hopefully, ahead of schedule and under budget.
**Part Three: Respond in 125 Words to this Response by a Peer who Answered the Same Question Above
e the first thing I would educate my project sponsor on was that EVM was the building block matrix to a successful project. Earned Value (EV) was calculated by adding up the cost of the budget for all the activities that was completed. To get the best outcome you would have to use it in combination with other calculations to determine the project status. Actual Cost (AC) this is done by calculating the actual cost for all the work that was completed so far on the project. Planned Value (PV) was calculated by adding the budget estimates for all the work that was completed as of that day. Second I would educate him on what I will be using in my project which was a SPI and a CPI. Schedule Performance Index (SPI) is a ratio that calculates the EV/PV which will show the relationship between the budget cost of the work that was actually performed and the cost of the work that was schedules to be completed at this time. If the calculation is greater than 1.0 that means the work is getting done. Cost Performance Index CPI is the ratio of taking the EV/AC. This will show the relationship between the budget cost of the work performed and actual cost of the work performed. It gives the burn ratio of the project. If the calculation is greater that 1.0 that mean the project is getting more work done for each dollar spent than initially estimated.
Part Four: Watch the Video at the Link Below and Respond in 100 words on how it relates to the free world's economies and to project management.
http://www.youtube.com/watch?v=XVQ1ULfQawk
