Is The Vice President 's Comments About Cost And Schedule Variance Correct?

Decent Essays

1. Are the vice president’s comments about cost and schedule variance correct?
Yes! As we have seen in the case study the Spokane industries are very particular about the earned value reports, as we seen in the reports that the Franklin electronics provided is seemed to be a very basic according their view. The values of cost variance at the 2nd month are like 6K, 2K, 3K, 3K, here the total comes to 14k ($14,000) and the same cost variance in the following month are presented as 7K, 3K, 5K, 10K ($25,000) respectively, so here we can see that the values that were provided in the 2nd month are less than 3/4th of the 3rd month. Comes to the scheduling variance the values given to the 2nd month are said to be 8K, 1K, 2K, 20K ($31,000), the 3rd month calculations are in the order 12K, 3K, 4K, 26K ($45,000), so by seeing this we can easily say that the scheduling variance is overrated nearly 50% of its value in the previous month. So, whatever the sponsor said in the case study is true.
I hope their main aim for the need of these earned value reports is to reduce the interchange meetings and to finish the project within the basic 3 constraints of a project management. That is why they opted a formalized project management. From the case study it is very easy for us to make sure that they believed earned value reports are some techniques to avoid the interchange meetings. The reduction in interchange meetings automatically reduces time for discussing the completed work rather than

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