Internet Exercise
Week 3: Internet Exercise #1
Uses of different S-curves and analysis methods
- Evaluation of progress and performance.
One of the uses of the S-curves is in regard to progress and performance evaluation. This application is more evident especially when there is the use of Earned Value Management. The S-curves, in this case, is mainly for comparison purposes in project success and future projections. Therefore, the importance of the use of the S curves, in this regard, is that it allows the monitoring of the progress of the project in an effective manner (Fleisher, & Bensoussan, 2015).
- Forecast of cashflow.
The other use of the S-curves in a project is on the financial forecasts. This claim is based on the fact that a project’s cash flow curve takes the S-shape form. The use of the S-curves in project management has been found to be useful in giving financial forecasts, and this is based on the fact that they portray a realistic and useful cashflow curve that can accurately depict the timing of each element of cost, and this is especially if the curve is plotted with cost and time as the variables.
- Comparison of quantity and output.
Last but not least, the other use of the S-curves is on the quantity output comparison. This application is mainly in the manufacturing and construction industries. In the quantity output curve, the S curve relates to two main variables, and these are the planned quantity versus the scheduled time, which are plotted and tracked along with the actual quantities. The use of the S-curve in the quantity output comparison is that it helps in monitoring the progress of work, with any deviations from the baseline quickly revealed (Fleisher, & Bensoussan, 2015).
Summary of the 10 key steps in EVM and the advantages the authors argue earned value offers for project control and evaluation.
Step 1: Definition of the scope of the project
One of the critical steps in project management is defining the scope of the project, and this includes the objectives and the deliverables. Doing so is important as it will make one understand or get to know where he is at all times and when such a person is done with a given step. The scope of the project should be accurately defined as this is what all the workings of the project will be based on. The definition of the scope also makes it easier for defining a new job, and this is enhanced by one of the critical tools in defining project scope, which is the Work Breakdown Structure (WBS).
Step 2: Determination of who will perform the defined work to include the identification of all the critical procurements.
It is important to clearly state the duties and responsibilities of a project. Having such clarity will minimize the chances of duplication of efforts. Besides that, the budget of the project should be clearly drafted. This will help in ensuring that the critical procurements are well taken care of.
Step 3: Planning and scheduling the defined work.
The earned value approach should ensure that there is a good scheduling system, with authorized resources embedded into the schedule. The developed plan and schedule should adequately capture the timeframe, authorized scope, along with the budget (PMI, 2011). Therefore, a proper project should have a formal scheduling system, as this is necessary for the employment of earned value as it describes the scope of it, its planned value along with the measures that arise as a result of earned value. The project plan and schedule are important as they help in outlining the manager’s baseline planned value that everyone on board should follow.
Step 4: Estimation of the required resources and authorization of budgets.
The planned value comprises two main elements and this is the scheduled work along with the authorized budget. Earned value, on the other hand, entails authorized work and authorized budget. The budget is known to detail the resources that are required in the project. Therefore, resource estimation and budgeting are important aspects.
Step 5: Determination of the metrics to convert planned value to earned value.
The metrics that can be used in this conversion include the various project milestone along with the weighted values of the project.
Step 6: Formation of a performance measurement baseline and the determination of the points of management control
The performance measurement baseline is mainly the cost and profits. The project baseline should include that which the executive management has given the project manager the authority (PMI, 2011). Besides that, the points of management control should be clearly established.
Step 7: Recording all direct costs that are consistent with the project budget.
In this case, the project managers should be notified of the amount of money that they have spent on the project. For there to be adequate employment of the earned value, the actual cost has to be aligned to the authorized project budgets.
Step 8: Continuously monitoring the earned value performance to determine the cost and schedule departures from the baseline plan.
This step emphasizes the fact that the most important aspect of using earned value is the cost efficiency readings that it offers. In this case, the difference between the cost incurred and the value of the work earned offers the cost efficiency factor (PMI, 2011).
Step 9: Forecasting the final required costs based on performance and keeping the management appraised so that corrective actions can be taken, if necessary.
The total funds required to finish a project should be clearly highlighted. After this, the management should be updated on a regular basis on how such utilization is done.
Step 10: Managing the authorized scope by approving or rejecting the changes while incorporating approved changes into the project baseline in a timely fashion.
Changes are expected in the course of the implementation of the project. In this case, the desirable changes are the ones that should only be approved. This should be done promptly and the responsible authorities should ensure that the changes match with the baseline of the project.
References
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis:
Effective application of new and classic methods.
Project Management Institute. (2011). Practice standard for earned value management.
Newtown Square, Pa: Project Management Institute.