Milestone Guidelines�

​

• Student's Name
• Tutor's Name
• Course Name
• Due Date

​

Capstone Project

• EVM is used to integrate schedule, cost and project scope to measure performance
• EVM essentials include earned value, planned value, actual costs and the budget at completion
• Evm is used by firms to improve performance and project communication through analysis
• Different methods are used to track profitability, performance and execution process.

��

• Planned value shows the value of work which has been approved
• Planned value calculated as the planned work completed assessed as a subject of budget cost
• P.V= % of planned work completed*budgets
• Planned value is essential for this project since it shows the variance and performance index in the project schedule.

Actual costs and Earned Value

• Actual costs show the summation of costs incurred in completing a project
• To obtain actual costs, we sum up all costs incurred in the current completion level of a project
• Earned value is the actual value of
• This is actually what a project has created successfully work done to completion
• EV= % of work done to completion* the set budget at completion.

Project Documentation

• E-procurement plan which shows the process to be used in proceeding with the new process which occurred as the Ariba implementation process.
• The project has also a well set out objective mission of transforming the organization into a decentralized purchasing process supported by e-processes.
• Approach plan document showed the process to be followed in implementing the project and make it a success.

• Project scope which supported the project implementation process b highlighting all necessary activities
• Project testing document highlighted the necessary plans which were essential to test the project and ensure the new system was reliable.
• Project Timeline documented the implementation process and expected time of completion

Earned Value Calculations

Project estimated cost = $2 million

​

Actual spending was $3 million comprising of $2 million which is sourceble and $1 million spent on technology.

​

the model was estimated to save $200 million and 2001 revenue was estimated to be $800

EVM Calculations

Earned Value

Will be calculated by taking the months where completion has been done over the total time schedule multiplied by budget cost

1859/ 1896 = 98.04%

. 98.04%*2 million = 1.96097 million dollars

​

​

​

​

​

Planned value

​

• We calculate the planned value percentage which is complete multiplied by the project budget plan = 948 for technical infrastructure and 948 for customization plan =948*5/6 = 0.790 million dollars
• Infrastructure customization for the month of September the planned value will be

= 948*5/6 = 0.790 million dollars

​

​

​

​

Ratios for software customization

• In calculating the ratio the formula for the schedule impact is given by

SV = BCWP – BCWS where

BCWP = 1.96097million

BCWS =1.896

Sv = 1.96097-1.896 = 0.06497 million

SPI= BCWP / BCWS

1.9607/1.896 = 1.0343

​

Cost Impact

• Cost Impact we first calculate ACWP which is given by calculating actual amount of money spent which is summing up actual amount spent which is
• Total ACWP for the five months is 913+846= 1.759 million
• Cv= BCWP – ACWP
• CV= 1.96097-1.759= 0.20197 million
• CPI = = BCWP / ACWP
• 1.96097/1.759 = 1.11482 million

​

​

Control Ratio Calculations

• control ratio is calculated as a product of SPI*CPI
• SPI=1.0343
• CPI= 1.11482
• CR= 1.0343* 1.11482= 1.153058

​

SPI Implication

• SPI=1.0343
• When the schedule performance index is greater than one the it implies the project is progressing well
• The SPI above shows work completed is more than the planned work at the current date

​

CPI Implication

• Cpi is used to analyze project efficiency
• CPI shows the value of completed work compared to actual costs incurred in implementing the project
• The cost of performance is 1.11482
• This implies that the Cpi is greater than one and the company will earn more than its actual spending on the project

Recommendations

• The planned schedule should be followed
• Cost data should align with the project scope
• There should be guidance to project personnel to ensure a successful implementation process
• The project execution process should support tracking different aspects in the e-procurement platform which will essentially decrease costs.

​

​

Recommendations

• The management can also co- join both the schedule aspects of the project and the cost tool to increase the support of cost incurred in the e-procurement process such as composite data applications

​

• Cost scheduling process should support cost estimation as a measure of improving-procurement cost estimates
• The system should also include a management plan to ensure proper planning and implementation of the project

​

References

• Ahmed, S., & Arocho, I. (2021). Analysis of cost comparison and effects of change orders during construction: Study of a mass timber and a concrete building project. Journal of Building Engineering, 33, 101856.
• Albers, H. H., & Suwala, L. (2021). Family firms and corporate spatial responsibilities in Germany: Implication for urban and regional planning and management (pp. 237-255). Routledge