OPIM 5894 ADVANCED PROJECT MANAGEMENT
ARIBA IMPLEMENTATION IN MED-X CASE
SURESH NAIR, Ph.D.
Professor,
School of Business
University of Connecticut, Storrs, USA
http://users.business.uconn.edu/snair/opim5894.html
ARIBA IMPLEMENTATION IN MED-X case
2
Issues Raised

Importance of Earned Value in Project Management
Prof. Suresh Nair, University of Connecticut
ARIBA IMPLEMENTATION IN MED-X case
3
Calculating Earned Value - Spreadsheet
Terms:
Budgeted cost of work scheduled (BCWS)
Actual cost of work performed (ACSP)
Budgeted cost of work performed (BCWP)
- Earned Value (what the work done should have cost)
Suppose 4 tasks should have been done by today
Task
A
B
C
D
Budget Done?
100
Y
100
Y
100
N
100
Y
Cost variance BCWP-ACWP
Schedule variance: BCWP-BCWS
Cost performance index
Schedule performance index
Control Ratio
CPI*SPI
Actual Cost
BCWS
120
100
90
ACWP
BCWP
100
120
100
100
100
100
100
100
90
100
400
310
300
-10
-100
BCWP/ACWP
BCWP/BCWS
97%
75%
73%
Prof.
Nair,
University
of Connecticut
These Suresh
calculations
assume
0/1 completion
of tasks. If that is not possible for large tasks, break them into smaller tasks
ARIBA IMPLEMENTATION IN MED-X case
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Control limits for CR
Prof. Suresh Nair, University of Connecticut
ARIBA IMPLEMENTATION IN MED-X case
5
Team Assignments – Team 1, Team 2, Team 3




Which of the two components (software, technical) are
underperforming according to the plan? How do you know this?
(Draw graphs, as necessary to make your point)
Are the components of the project within budget? How do you
know?
What can you conclude by looking at the combined earned
value data for the project?
Why did Terry Baker think that the project was going
according to plan the entire time?
Prof. Suresh Nair, University of Connecticut
ARIBA IMPLEMENTATION IN MED-X case
6
Team Assignments (contd.) – Team 1, Team 2, Team 3



How much longer will the project take? (it is September now)
What should Martin have done earlier in the project timeline to
prevent delays?
What should Martin do when managing future projects to
prevent similar problems from developing?
Prof. Suresh Nair, University of Connecticut