Earned value | FPX5333 | Capella University

Develop a comprehensive earned value analysis report.

Introduction

This portfolio work project, an earned value management analysis, is based on your selected business or IT project. You may choose to base your assessment on the Revive LLC case study for the development of a new online employee orientation module, or you may continue to use a company of your choice. Both human resource (HR) and information technology (IT) employees, as well as contractors, will be utilized in this project.

Earned value (EV) is defined “the measure of work performed expressed in terms of the budget authorized for that work” (Project Management Institute, 2021, p. 275).

Project managers examine cost control, tools, and techniques that define the procedures by which the cost baseline may be changed. They engage in performance measurement to assess the magnitude of variations that occur during project execution. EVM is used to measure project performance by comparing certain predefined variables. Microsoft Project is a tool used to track planned cost versus actual cost, calculate the earned value, and forecast the effects of some cost changes.

Reference

Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition and The Standard for Project Management. Newtown Square. PA. 2021.

Scenario

For this assessment, choose either Option A or Option B. You do not need to do both. Both options will be graded using the same scoring guide.

Option A: Project Revive LLC is a consulting firm of highly charged and accomplished project managers whose main stream of revenue comes from managing the turnaround of failing projects. As a consultant with Project Revive LLC you will study, analyze, and manage a failed project from NearlyFree.com. NearlyFree.com is a fictitious company and the project documents for NearlyFree.com project scenario are linked below. The NearlyFree.com project was originally scoped to develop and deploy an automated web-based training system for new employees to reduce the workload and cut down personnel resources required to complete the new employee orientation (NEO) training.

As a veteran member of the Project Revive team, you already know the value of continually examining performance throughout a project to further define and update project data. Special attention to documenting and identifying problems is required in time to make appropriate adjustments. The earned value management (EVM) technique is often used in this type of analysis. Continue your analysis of the failed project by applying the EVM technique to examine performance based on what was accomplished.

Option A Resources:

Option B: You may choose a business of your own. It must include (but is not limited to) the following criteria:

• Clearly indicate the title of the project in every assessment.
• You must have access to the following documentation:
  • Scope statement.
  • Final deliverable and product definition.
  • Project work-breakdown structure.
  • Project schedule.
  • Quality plan.
  • Project costs (estimates and actuals).

Your Role

For both Option A or B, you are the project manager.

Requirements

Microsoft Project is the recommended software tool for this course due to its wide industry acceptance and its use in many project management professional roles. To make this easier, you have the ability to download and install your own version of MS Project for use in this course. See the Software Preparation and Technology Access activity in Assessment 1 for more information.

Practice using MS Project in this course will prepare you for future professional PM roles and responsibilities; please use MS Project for those tasks supported by MS Project. If you have access to other tools such as MS Visio, MS PowerPoint, MS Word, or other project management software that you believe may still meet the requirements of this course, please discuss your selected alternative with faculty.

Use the PMBOK® Guide as the model for developing the deliverables.

Earned Value Analysis

Deliverable: Develop an Earned Value Analysis report of the current failed project.

Complete the following:

• Use Microsoft Project or different, faculty-approved software to show earned value in a list of tasks that measure the cost of the work performed up to a certain date (the current date) based on the Project Schedule [MPP].
• Consider how you can apply this analysis of the failed project to a successful project turnaround.

Address the following topics. Where necessary, define assumptions you made.

• Apply an earned value technique.
• Explain the value of the information provided through the EVM technique.
• Analyze project success based on earned value calculations.
• Base project decisions on earned value calculations.
• Explain how you will apply earned value calculations to a successful project turnaround.

Use the MS Project functionality (or another software program) to:

• Display project summary information and report.
• Create project reports.
• Export project plan cost data into Excel.

Deliverable Format

• References: There is no set number of references required for this assessment. Use scholarly or academic sources where applicable.
• Format:
  • Use Microsoft Project to obtain project costs information.
  • Use your choice of MS Word, MS Visio, or MS PowerPoint to develop the comprehensive analyses.
  • These analyses are professional documents and should therefore follow the corresponding Academic and Professional Document Guidelines [PDF], including single-spaced paragraphs.
  • Use APA style and format for references and in-text citations.

Evaluation

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:

• Competency 1: Apply project cost tools and techniques to ensure project success.
  • Apply an earned value technique.
  • Analyze project success based on earned value calculations.
  • Explain project decisions based on earned value calculations.
• Competency 4: Communicate effectively in a professional manner consistent with the standards of project management.
  • Explain how earned value calculations apply to a successful project turnaround.