Xemba Translations
Telecommuting Expansion
Part A: Addendum to Risk Management
Part B: Project Performance Metrics
Part C: Executive Summary
Darla Davidson
4/28/19
Part A – New Risk Assessment
Current risk assessment based on the case study and updated status of April 16th.
Part B – Project Performance
The measurement of the project performance is assessed using the following techniques, tools and metrics. The progress is reported monthly by team leads and used for evaluation of the schedule and budget.
Critical Path – Gant Chart
Reviewed and updated with the reported progress. It can then be analyzed for additional risks and reviewed for necessary adjustments to meet project objectives
Planned Value/Earned Value/Actual Costs – (PV/EV/AC)
These are necessary tools which are updated in the monthly meeting and used in metrics.
Schedule Variance
Calculated using Earned value - Planned value.
Cost Variance
Calculated using Earned value – Actual cost.
Cost Performance Index (CPI)
CPI is a measurement of financial efficiency of a project. A positive number is desired for the calculation which would implicate that the costs are lower than expected while a negative would implicate that the costs are higher than expected. It is calculated by dividing EV by AC.
Schedule Performance Index (SPI)
SPI is a measurement of schedule efficiency of a project. A positive number is ahead of schedule while a negative number is behind schedule. It is calculated by dividing EV by PV.
Budget at Completion
Values that were established at the beginning of the project.
Estimate to Complete (ETC)
Forecast of how much more money needed to complete
Estimate at Completion (EAC)
There are several different calculations for this measurement.
1. If there have not been any variances to the project and no variances foreseen in the future. The calculation would be AC+ ETC.
2. The most common is AC+ (BAC-EV). This is used if there has been a variance to the project with no variances foreseen in the future.
3. If there have been variances and more foreseen in the future the following calculation should be used AC + (BAC-EV)/CPI.
B1 – Justification of Metrics
There are many different metrics that could be used as a measurement for this project. Taking into consideration the remaining time and relative size of this project, a simple approach is appropriate.
Considering the current risks which have been established, the Estimate at Completion would be the recommended metrics to use for this project. The calculation for this will be to use the 2nd approach.
B2 – Current Performance
Using the EAC to calculate a cost variance, the tasks that need reviewed are highlighted in pink.
Task #
Description
Total Cost ($)
Baseline Cost ($)
Actual Cost ($)
CV
Complete Y/N
% Complete
($)
1
Computer inventory & requirements
27,715.16
25,021.43
27,715.16
(2,693.73)
Yes
100%
1.1
Inventory computers in use by new telecommuters
10,962.00
10,150.00
10,962.00
(812.00)
Yes
100%
1.2
Determ...
