Review Questions On Tracking Gantt Chart

According to Zaccagnini & White (2017) developing a budget is an important step in project management. The budget determines personal, materials, and financial resources that are available for the achievement of the project (Roussel et al.,2016). An estimate of the necessary budget as well as the individual’s time to be invested in the project is necessary so the organization can approve these resources needed for the success of the project. For this project,

592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592

- Cost Variance (CV): The Cost Variance indicates a value which is a measure of how much the project is either overspent or underspent at any given point in time. For any given point in time, once the EV and AC are known the CV can easily be calculated. The formula for CV is quite simply: CV = EV – AC. Here a positive value indicates that the project is under spent at the current point in time and a negative value would indicate the opposite that a project is over spent at the current point in time. The Cost Variance at the end of the project is calculated as follows: CV = BAC – AC. The same above rationale is applied to positive and negative numbers to indicate if the project is under spent or over spent respectively.

Nowadays, Project scheduling plays lot of benefactor in executing any type of project in allotted time and cost. Project scheduling is a vital stage in project development phase due to technological advancement in information technology where lot of IT projects have led different way of

The earned value analysis has led to see the project will control the actual budget, which is $18,000. The actual cost at the period 4 totaled to be $7,050, and total of earned value at period 4 is $7,750. The estimate at completion for typical is $22,550. These variances show that this project will exceed the original budget of $18,000, so we are still exceeding the project’s original budgets. The SPI is less than a value of 1, which means that the project will also over schedule and activity plans. The requests immediate actions from the third-party company.

After setting the entire project to 40% complete on Oct 1, 2008 we can see that the project is behind schedule. The schedule variance of the entire project is $ (736,599) and Schedule performance index is at 0.68, which indicates that for every $1.00 spent in the project we are only getting $0.68 worth of work done. Since we do not have actual cost data, the MS Project calculates the budget is under budget by a negligible $80.

budget. As the project evolves, additional information is discovered and further estimates are produced. This is an extremely important process and we cannot emphasize enough the need for this re‐estimation or re‐budgeting process at each phase of the project. In any case, for the purpose of this article, we will call the revised budget the "actual budget." Another standard activity is to provide management with an expected cash flow. From a financial perspective this is an important activity, but it also can be used as your cost expectation.

The Gantt chart is used for the scheduling of project tasks to show the start and finish dates, as well as the duration. This helps to see the duration for the entire project, making sure that there is no overlapping of the task to ensure there is no overlapping. The assistant manger is the main one to see the schedules follow through this will include the making sure the staff show up to their set schedules while the project also stays on track with the schedule. The Gantt chart is really great for the development of the schedule.

Eichenberger, J. (1998). Project management, part III budgets for projects. AAOHN Journal, 46(5), 268-70. Retrieved from http://search.proquest.com/docview/101346

Part of project management is the estimation of the project cost. The budget can be derived from the project plan by looking at the following criteria (Marchewka, 2009):

Draw a Gantt chart of the sequence and timing of key activities. What insights does this give you regarding the plan and its implementation?

The cost planning is one of important phases for project management. It will goes through whole project’s life cycle. It is foundation of project and it will tell the project are measured, reported and controlled in every process. Estimating is the process of forecasting or approximating the time and cost of completing project deliverables.

Cost performance index (CPI) and schedule performance index (SPI) can also be included which gives the work efficiency that has been accomplished. If CPI =1.0 then it is a perfect cost performance. If CPI 1.0 the project is being less accomplished than predicted cost. If SPI = 1.0 we have perfect schedule performance. If SPI < 1.0 then project is moving at slower rate than planned. If SPI > 1.0 then project is heading at a faster rate than what is planned. The performance index can also be included with cost and schedule performance index which is useful in trend analysis.

To resolve the drawbacks of EVM technique, Earned Schedule has been introduced to provide stronger performance measurement indicators that express performance of a project’s schedule in units of time. ES (Earned Schedule) is like a replacement for EV (Earned Value), PD refers to the planned duration of a project or an activity which can be a replacement of PV (Planned Value), while AT which stands for Actual Time of an activity may replaces AC (Actual Cost).

There are three basic components to EVM and EVM is well known for its use of acronyms. Planned Value (PV) is the scheduled cost of the work in a a specific given time. This is also known as Budgeted Cost of Work Scheduled (BCWS). This is developed by firstly taking the work that must be completed for a successful project outcome and this work is estimated, regardless of whether it is internal or outsourced. This estimate is then converted into a monetary value which reprents the specific currency portion of the ‘planned value’ of the specific task, which gives an idea of that the task has a worth to the business and is then scheduled based upon when the task is actually scheduled to happen within the project plan. Timing and amounts are then set out and the Planned value for the task is set. A project change being implemented is the only way this can be changed. The next component would be the Actual Cost, which is the actual amount of money which has been spent to date. This is also known as Actual cost of Work Performed (ACWP) and is the number in which finance is always most concerned about. This represents the actually monetary cash value that the business has to spend on the project. Actual cost is determined using the accounting system’s method for accumulation of cost. It can be helpful to collect costs established on a project account number or change number correlated with the costs and this number might change each day based on whether the project work was