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Week 5 Case Study

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Schedule Variance
SV= 200,000-600,000
SV= -400,000
Cost Variance
CV= 40,000-200,000
CV= -160,000
2.
Jimmy’s point about the material cost does have merit. The cost of the material is the
biggest cost incurred for this project. The cost of the material changes the numbers to calculate
the earned value because the question is about the work being done not the materials.
3.
Jimmy and Eric both have valid points about the status of the project. Jimmy’s point of
the project being on track does make sense since they are starting the third phase at five weeks
which takes 3 weeks and the final phase will take one week equaling four weeks left. Eric’s point
of the project not on budget is also correct since the schedule and cost variances are negative
numbers.
4.
The advice I would have for Eric related to his new role of VP of Operations would be to
educate the project manager on the cost and schedule variances. Instead of barking at Jimmy,
Eric could have approached the discrepancies differently. To be a productive and efficient VP of
operations, understanding others may not have the same education and help them gain that
knowledge.
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