Earned Value Analysis Report for Centennial College Project

QUESTION

You are working on a project producing new promotional materials for Centennial College, including welcome posters to be displayed around the campus on the first day of the semester. Here are the details:
The cost to produce each poster is expected to be $5 per poster
You are expected to produce 20 posters per day
The project is expected to take 30 days, so a total of 600 posters are expected at the end of the project.
At the end of day 12 the status of the project is as follows:
• 200 posters have been produced
• $1,400 of the budget has been spent

You need to provide a report to your project sponsor on the progress of the project using Earned Value Analysis. Which are the correct numbers to present:

Question 1 options:

Earned Value= $1200, Cost Variance = -$200, Schedule Variance = -$400

Earned Value= $1000, Cost Variance = -$400, Schedule Variance = -$200

Earned Value= $1200, Cost Variance = -$400, Schedule Variance = -$500

Earned Value= $1100, Cost Variance = -$100, Schedule Variance = -$300

ANSWER

Earned Value Analysis Report for Centennial College Project

Introduction

In this report, I will provide a comprehensive Earned Value Analysis for the ongoing project of producing promotional materials for Centennial College, including welcome posters. The analysis will focus on the progress made up to the end of day 12, with the aim of assessing the project’s performance in terms of cost and schedule.

Background

The project involves producing a total of 600 welcome posters, with each poster costing $5 to produce. The project is expected to take 30 days, and the team is required to produce 20 posters per day.

Current Status (End of Day 12)

At the end of day 12, the team has successfully produced 200 posters. To achieve this milestone, $1,400 has been spent from the project budget.

Earned Value (EV)

The Earned Value (EV) is a crucial metric that quantifies the value of the work performed by the project team. In this case, the Earned Value can be calculated as the number of posters produced multiplied by the cost per poster.
EV = Number of posters produced * Cost per poster
= 200 posters * $5/poster
= $1000

Cost Variance (CV)

Cost Variance is the difference between the Earned Value (EV) and the Actual Cost (AC). It indicates whether the project is currently under or over budget.
CV = EV – AC
= $1000 – $1400
= -$400 (Negative sign indicates that the project is over budget by $400)

Schedule Variance (SV)

Schedule Variance is the difference between the Earned Value (EV) and the Planned Value (PV). It helps determine whether the project is ahead of or behind schedule.
SV = EV – PV
= $1000 – (Planned number of posters * Cost per poster)
= $1000 – (12 days * 20 posters/day * $5/poster)
= -$500 (Negative sign indicates that the project is behind schedule by $500)

Conclusion

Based on the Earned Value Analysis conducted up to the end of day 12, the project has produced an Earned Value (EV) of $1000, indicating that the team has successfully completed work worth $1000. However, the project is facing challenges with cost and schedule. The Cost Variance (CV) is -$400, indicating that the project is over budget by $400, and the Schedule Variance (SV) is -$500, indicating that the project is behind schedule by $500.

Recommendations

To get the project back on track, it is crucial to address the cost and schedule variances. The project team should identify and mitigate cost overruns by optimizing resources and processes. Additionally, they should implement strategies to increase production efficiency and catch up on the schedule.

By regularly monitoring the Earned Value and its associated metrics, the project sponsor and team can proactively address any issues, make informed decisions, and ensure the successful completion of the Centennial College promotional materials project.