Huntsville Case Study: Cost Variance

The Huntsville Project has been ongoing for a few weeks. The budget for this project was $2,750,000.00. The Project Manager for this project has been instrumental in making sure that everyone has been included and is aware of the progress being made. This was done by communicating with email, memos and as well as phone calls. The project is currently within the budget and is progressing according to schedule. The total cost is estimated at
$2,631,468.00 and that makes the project come in under budget at $118,532. The budget during the planning phase came in at $283,882 which was for a period of 10 weeks. The budget during preparation phase was 1,282,442.00 for a total of 47 weeks. Monitoring and controlling the project was instrumental in
Cost Variance
(CV) indicates how much over or under budget the project is. The Schedule Variance indicates how much ahead or behind schedule the project is. With this information the PM will be able to relay any information to the stakeholders and the status of the project and address and concerns. www.tutorialspoint.com/earn_value.../cost_variance.htm The PM for should be able to provide the necessary information that would be used to make sure that this aspect of the project was being monitored is on schedule. It is important for the
PM to monitor the project to ensure that the schedule performance index is meeting the goals and the project is on track. A Schedule Performance Index (SPI) score of 1 or greater is an optimum goal since it shows the Project Management that the project is on track and has favorable conditions of meeting the required goals. On the other side is the cost performance
(CPI) is a result value that is less than one indicates that the conditions of cost efficiency for the project are considered to be less than favorable. The cost performance index can change over