PROJ 592
Final Course Project
PROJ-592
Project Cost & Scheduling Control
Professor
By
December 15, 2013
Executive Summary
The Theme Park project was initiated on 4/14/08 with a total initial budget of $ 4,449,920.00. The project was planned to be completed on 12/19/08. Four months later on 10/1/08 a performance analysis was completed and it was identified that the project is behind schedule and only 40% completed. The total months for the project was planned for eight months and the project should be at 50% completed.
An Earned Value analysis reflected that the project is currently behind schedule. The schedule variance (SV) indicated a negative $565,226.34 and the scheduled performance index showed as .69. When SV is a negative number and SPI less than one, this indicates the project is behind schedule. After calculating the CPI/SPI value (1/.69= 1.45), any values above 1.3 should be investigated immediately, because those numbers are much too good to be true. In addition based on the Work Breakdown Structure the total duration was 6 days behind schedule. The new completion date in the WBS also indicates that the schedule completion date currently is 10days behind schedule.
If the current schedule is maintained, the project will be completed on 12/29/08 and the total cost is$4,644,920.00. Compare to initial budgeted cost the new cost is over budget by 195,000.00. Actual cost so far is $1265, 990.00 and the remaining cost is $3,378,930.00.
To bring the schedule in line with what the customer wanted, the corrective action I would recommend are managing the triple constraints; time, cost and scope. Builder, the ride supplier, steam fitter and electricians are performing the worst, based on the analysis. Max capacity for a builder is 600% and the max capacity for ride supplier is also 600%. Builder appears to be the lowest cost of $65.00/hr. and ride supplier is $100/ hr. I would recommend
PROJ-592
Project Cost & Scheduling Control
Professor
By
December 15, 2013
Executive Summary
The Theme Park project was initiated on 4/14/08 with a total initial budget of $ 4,449,920.00. The project was planned to be completed on 12/19/08. Four months later on 10/1/08 a performance analysis was completed and it was identified that the project is behind schedule and only 40% completed. The total months for the project was planned for eight months and the project should be at 50% completed.
An Earned Value analysis reflected that the project is currently behind schedule. The schedule variance (SV) indicated a negative $565,226.34 and the scheduled performance index showed as .69. When SV is a negative number and SPI less than one, this indicates the project is behind schedule. After calculating the CPI/SPI value (1/.69= 1.45), any values above 1.3 should be investigated immediately, because those numbers are much too good to be true. In addition based on the Work Breakdown Structure the total duration was 6 days behind schedule. The new completion date in the WBS also indicates that the schedule completion date currently is 10days behind schedule.
If the current schedule is maintained, the project will be completed on 12/29/08 and the total cost is$4,644,920.00. Compare to initial budgeted cost the new cost is over budget by 195,000.00. Actual cost so far is $1265, 990.00 and the remaining cost is $3,378,930.00.
To bring the schedule in line with what the customer wanted, the corrective action I would recommend are managing the triple constraints; time, cost and scope. Builder, the ride supplier, steam fitter and electricians are performing the worst, based on the analysis. Max capacity for a builder is 600% and the max capacity for ride supplier is also 600%. Builder appears to be the lowest cost of $65.00/hr. and ride supplier is $100/ hr. I would recommend