Project Management: Variance Analysis and Earned Value Management

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student:
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1PROJECT MANAGEMENT
Executive Summary
The findings of this based is that from the variance analysis, it is found that the project cost is
under the budget by calculating cost variance while the project is behind the schedule by
calculating schedule variance. Earned Value Management (EVM) calculations is done to
measure the future performance of the project by comparing its present situations. It helps the
project manager to measure its performance used to find the variances on basis of comparison
of the work performed and planned. EVM is utilized for cost as well as schedule control and
useful for project forecasting. Cost variance is to be calculated by difference of completed
work cost with planned cost. Similarly, the schedule variance is difference between
completed work and planned schedule. The recommendations on the project are that in order
to overcome with cost and schedule problems, it is suggested to control the project schedule,
scope planning and risk management planning so that there are less possibilities of errors in
the project.

2PROJECT MANAGEMENT
Table of Contents
Executive Summary...................................................................................................................1
Current status of the project.......................................................................................................3
Forecast future performance......................................................................................................8
Recommendations......................................................................................................................9
References................................................................................................................................10
Bibliography.............................................................................................................................11
Appendix..................................................................................................................................12
Supporting data....................................................................................................................12

3PROJECT MANAGEMENT
Current status of the project
The project is based on construction work. The current status of the project shows that
the construction project is behind the schedule. Schedule variance (SV) is calculated by
deducting the planned value subtracted from the earned value, and remaining value tells
whether the plan is ahead or behind the schedule. In this project, the value of SV is (-
$42,732.21), therefore it shows the construction project goes behind the schedule.
The cost variance (CV) is calculated by showing difference between baseline cost as
well as actual cost (Kerzner & Kerzner, 2017). In this project, the cost variance is also
negative with value of (-$5,675.14), therefore the cost of project tasks are under the budget or
baseline amount.
Schedule and cost variances are existed to assess the financial presentation of the
project work. The cost variances compare the budget set before starting of the project and
what was actually spent in the project (Fleming & Koppelman, 2017). Cost variance is
existed to determine difference between actual expenditure as well as expected expenditure.
Schedule variance is existed to determine the performance of the project on basis of project
schedule.
From the Ms project schedule, it is found wrong is that the project schedule goes
behind the schedule, therefore the project manager should manage the schedule by allocating
more resources or increasing the working hours of the resources so that they can meet with
the planned schedule of construction project. The project manager can plan proper steps to
manage changers into the baseline schedule (Heagney, 2016). They can determine the project
status, conduct review, determine that there is indeed any changes of the project schedule in
addition to manage actual changes. It is right that the cost is under the budget and therefore
there is no increasing in the budget.