Give an explanation of how earned value management (EVM) may be used to keep expenses under control and monitor the overall effectiveness of a project, and then hypothesize as to why it is not utilized more often. How can one determine if the data for cost variation, schedule variance, cost performance index, and schedule performance index are healthy or unhealthy? What are some basic rules of thumb?

Give an explanation of how earned value management (EVM) may be used to keep expenses under control and monitor the overall effectiveness of a project, and then hypothesize as to why it is not utilized more often. How can one determine if the data for cost variation, schedule variance, cost performance index, and schedule performance index are healthy or unhealthy? What are some basic rules of thumb?

Information Technology Project Management

9th Edition

ISBN:9781337101356

Author:Kathy Schwalbe

Publisher:Kathy Schwalbe

Chapter7: Project Cost Management

Section: Chapter Questions

Problem 10QQ

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In order to control expenses and monitor project progress, explain why earned value management (EVM) is not used more often. What are some general rules for establishing if a cost variance, schedule variance, cost performance index, or schedule performance index is positive?
Justify the use of Earned Value Management (EVM) to control costs and monitor project progress, and hypothesis as to why it is not used more often. For example, what are some general rules of thumb for deciding whether or not a cost fluctuation, a schedule variation is positive or negative?
You have been made project coordinator for an upcoming tourism workshop to be held in the island of Anguilla. Local, regional and international participants will be in attendance. You have invited 25 participants and 12 presenters as part of your planning. In addition, there are several other tasks to be performed: i. Letters of invitation are to be sent with relevant information. ii. Overall estimates for workshop funding need to be calculated. iii. During the workshop, all attendees and equipment requests will be documented for reporting purposes and also to be used for future analysis when compared with other possible workshops. iv. Final reports will be written to document those persons who attended the workshop as well as to compare the pre- and post-funding estimates. v. Extra expenses incurred at the workshop are also to be noted. vi. A brief presentation highlighting various aspects of Anguilla’s culture and island is to be made to all participants at the beginning of the…
A project estimator is working on estimates for a project that is very similar to a previous project, in that it has many of the same features and those features have similar costs. Each feature or deliverable will represent the same percentage of the total cost as it did for the previous project. He is using the _________ method of top-down estimating. a. ratio b. consensus c. apportion d. function point e. learning curves
Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV = $23,000 EV = $20,000 AC = $25,000 BAC = $120,000 What is the cost variance, schedule variance, cost performance index (CPI), and scheduleperformance index (SPI) for the project? How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Use the schedule performance index (SPI) to estimate how long it will take to finish this project. Sketch the earned value chart based for this project, using Figure 7-5 as a guide.
Explain how earned value management (EVM) can be used to control costsand measure project performance and speculate as to why it is not usedmore often. What are some general rules of thumb for deciding if costvariance, schedule variance, cost performance index, and scheduleperformance index numbers are good or bad
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Explore the concept of traceability in requirement analysis. How can traceability matrices be used to link requirements to design and testing phases of a project? What are the benefits of maintaining traceability throughout the project lifecycle?
You have been made project coordinator for an upcoming tourism workshop to be held in the island of Anguilla. Local, regional and international participants will be in attendance. You have invited 25 participants and 12 presenters as part of your planning. In addition, there are several other tasks to be performed: Letters of invitation are to be sent with relevant information. Overall estimates for workshop funding need to be calculated. iii. During the workshop, all attendees and equipment requests will be documented for reporting purposes and also to be used for future analysis when compared with other possible workshops. Final reports will be written to document those persons who attended the workshop as well as to compare the pre- and post-funding estimates. Extra expenses incurred at the workshop are also to be noted. A brief presentation highlighting various aspects of Anguilla’s culture and island is to be made to all participants at the…
Explain why earned value management (EVM) should be used to keep track of money and how well a project is doing, and provide your best guess as to why it is not. Which of these four metrics—cost variance, schedule variance, cost performance index, and schedule performance index—should be treated as positive or negative, and how?
When calculating the NPV of a project, the time value of money is an important consideration. Is the time worth of money just as essential in low-inflation periods as it is in high-inflation periods? Explain your response.
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