Homework 5

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School

Morgan State University *

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650

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Industrial Engineering

Date

Dec 6, 2023

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docx

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Uploaded by jabro51

5a: Project-level SV = SV1 + SV2 + SV3 = 10 - 5 + 0 = 5 Project-level CV = CV1 + CV2 + CV3 = 5 + 0 - 5 = 0 Average SPI = (SPI1 + SPI2 + SPI3) / 3 = (1.333 + 0.75 + 1) / 3 ≈ 1.028 Average CPI = (CPI1 + CPI2 + CPI3) / 3 = (1.143 + 1 + 0.667) / 3 ≈ 0.937 A positive variance indicates that the project is performing better than planned in terms of schedule or budget. However, a performance index less than 1.0 indicates that the project's efficiency in utilizing resources or time is lower than planned. These two conditions can occur simultaneously when the project is ahead of schedule or under budget, but it is not as efficient as it should be with the resources or time it has saved. In other words, even though the project is doing well in terms of schedule or budget, it might not be as efficient as expected, which could indicate inefficiencies or resource issues within the project. 5b: At my organization, we place a strong emphasis on continuous improvement and proactive project management. To ensure that we effectively respond to variances and deviations in our projects, we utilize several methods and tools that align with industry best practices. These methods include: Lessons Learned Register: As outlined in Section 4.4.3.1 of our project management framework, we maintain a robust Lessons Learned Register. This register serves as a repository of knowledge gained from past projects. It contains valuable information on both successful and challenging project experiences. When variances occur, our project teams refer to the Lessons Learned Register to identify effective responses and best practices that were applied in similar situations. This proactive approach helps us avoid recurring issues and optimize project outcomes. Quality Reports: Section 8.2.3.1 of our project management guidelines emphasizes the importance of quality management. We maintain detailed Quality Reports that capture quality- related issues, recommendations for process enhancements, and corrective action recommendations. These reports are instrumental in addressing any quality variances or deviations that may arise during project execution. By promptly identifying and addressing quality issues, we ensure that our projects meet or exceed the established quality standards. Alternatives Analysis: When a deviation occurs, our organization employs an Alternatives Analysis approach. This method allows us to assess various corrective actions and preventive measures systematically. By considering a range of options, we can select the most appropriate response strategy to address the specific deviation effectively. This approach aligns with our commitment to evidence-based decision-making and ensures that corrective actions are well- suited to the unique circumstances of each project.

5c: The notes from this week provides insights into several statistical methods for forecasting the Estimate at Completion (EAC) in Earned Value Management (EVM). Each of these methods makes different assumptions about future cost performance. Here are the assumptions associated with each statistical method mentioned in the reading: Statistical Estimate 1: Assumption: This method assumes that future cost performance will be in accordance with the original plan, regardless of past performance. It assumes that any cost overruns or underruns experienced in the past will not continue, and future performance will align with the original budget. Statistical Estimate 2: Assumption: This method assumes that future cost performance will be the same as the cost performance observed up to the present. It considers the current Cost Performance Index (CPI) as a reliable indicator of future performance. Essentially, it assumes that past performance trends will continue. Statistical Method 3: Assumption: This method assumes that future cost performance will be influenced by both past cost and schedule performance. It considers that if the project is behind schedule (Schedule Performance Index, SPI, less than 1.0), additional resources may be allocated, impacting cost. Statistical Method 3a: Assumption: This method is similar to Method 3 but assumes that future cost performance will be influenced jointly by past cost and schedule performance in some proportion. It allows for a more flexible adjustment based on the combination of cost and schedule performance trends. Statistical Method 4: Assumption: This method considers using an average of the most recent Cost Performance Index (CPI) values to forecast future cost performance. It assumes that the average CPI over the last several reporting periods is a good predictor of future cost efficiency.

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