University Project Management: ENG8208 Advanced Engineering Project

This project management assignment analyzes two projects using Earned Value Management (EVM), calculating cost variance, schedule variance, CPI, and SPI to assess performance. The assignment explores the advantages and risks of EVM, emphasizing its efficiency in assessing project progress but also acknowledging potential inaccuracies based on past performance assumptions and the cost of implementation. The second part focuses on project development, including an updated business case for a mobile network infrastructure project, outlining project objectives using the SMART tool, and detailing functional and non-functional requirements. The assignment emphasizes the importance of proactive risk management, accurate EVM calculations, and effective project planning to ensure successful project execution within budget and schedule constraints. It highlights the need for robust project management tools and methodologies to mitigate risks and achieve desired outcomes.

Running head: PROJECT MANAGEMENT
PROJECT MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Question 1 Earned value management............................................................................................2
Question 1(a) - Project 1..............................................................................................................2
Question b- Project 2...................................................................................................................2
Question 1 (c) Project comparison..............................................................................................3
Question 1 (d)..............................................................................................................................4
Question 2 project development......................................................................................................6
Question 2 (a)..............................................................................................................................6
Bibliography..................................................................................................................................20

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Question 1 Earned value management
Question 1(a) - Project 1
Given details,
Budget at Completion (BAC) of $4,500,000
Planned value (PV) $1,100,000
Actual cost (AC) $900,000
Percentage of work completed 26%
Earned value (EV) = Budget at completion * actual% completed= 1,170,000
Cost variance (CV) = EV-AC= 270,000
Schedule Variance= EV- PV= 70,000
Cost performance Index (CPI) = EV/AC= 1.3
Schedule Performance Index = EV/PV= 1.063
Question b- Project 2
Budget at Completion (BAC): $4,500,000
Schedule time to complete: 24 months
Planned value (PV) $1,650,000
Actual cost (AC) $1,800,000
Percentage of work completed 36%

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Earned value (EV) = 1,620,000
Cost variance (CV) = -180,000
Schedule Variance= -50,000
Cost performance Index (CPI) = 0.9
Schedule Performance Index = 0.98
Question 1 (c) Project comparison
After evaluating both the project components it has been observed that with the use of
Earned value management it becomes easy to determine the project execution details. After
comparing both projects, the conclusions that can be drawn are listed below:
 Cost variance: cost variance is referred to the indicator that helps in monitoring the
financial progression associated with the business. With lower cost variance it becomes
east to ensure that the project risks are controlled effectively. In case of Project 1 the cost
variance was in positive range that states the project has been executed within the budget
and around 270,000 have been saved. On the other hand it has been observed that in case
of project 2 the cost variance is in negative. This means that the project has run out of
money. Negative value of cost variance is considered as an indicator of over budget.
 Schedule variance: With the use of schedule variance it becomes easy to determine the
schedule that is maintained by a project. Schedule Variance for project 1 was estimated to
be around 70,000. This states that the project is on track and will be executed within the
estimated time period. On the other hand the schedule variance for the project 2 is in
negative. This means that project is running behind the schedule. Thus it will take more
time to get completed.

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 Cost performance index: CPI is used for the purpose of measuring the financial
effectiveness and efficiency associated with a project. This is used for representing the
amount of work that is completed per unit of the cost that is spent. Project 1 has a CPI
value of 1.3; this means that the project is maintaining its budget ad will deliver the
product within the estimated time with proper results. Whereas the CPI value for the
project 2 is below 1 that means the total budget is 90% to every financed dollar.
 Schedule performance index: This is referred to the measure that is used for
determining the project status. It helps in determining how close the project is from being
completed. The project 1 has SPI value 1.063, which means the work, has been executed
more than it was planned. On the other hand the 2 project has a SPI value less than 1 that
means the estimated works have not been executed within the estimated time. The
schedule for the project 2 is running behind. This can cause impact over the project
execution rate.
Question 1 (d)
Earned value management is considered to be one of the most efficient methods for
assessing the project performance. There is a need to identify the essential components so that it
can offer better data results towards the customers (Khesal et al. 2019). There are several risks
that may impact a project. The possible risk that comes along with the use of earned value
management within a project is that it works on an assumption that the future performance can
be estimated on the basis of past performance. However it is very difficult to ensure that the
assumption will work out by the end of the project.

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Second risk that is identified with the use of EVM method is that EVM assessment does
not includes measuring the impact of a number of project performance factors that are the
outcomes of complexity in consecution projects.
Third factor, the cost of earned value method for a project is expensive and requires
efficient implementation of EVA software.
Lastly, lack of proper management of schedule, budget and goal will lead to impacting
the overall performance of the project. Thus it will become difficult to calculate the EVM for the
project (Miguel et al. 2019).
Beside this with the use of earned value method it becomes easy to calculate the overall
project components. For successfully executing a project it is important to calculate certain
factors that are the cost variance, schedule variance, cost performance index and schedule
performance index. Once the project manager implements EVM, then it is important to use the
method after each phase. If the earned value for the project is calculated wrong, then the project
budget and schedule will also become wrong (Babar, Thaheem and Ayub 2017). This will
eventually lead to hampering the project execution phase. Thus it can be stated that, the main risk
that is faced is with wrong calculation of the earned value for a project.
Let’s take an example off construction project. For construction project it is important to
calculate the external factors and the environmental factors that may hamper the performance.
With proper analysis it will become easy to manage the project. If any error causes within the
earned value calculation then the complete project may get hampered. It is important for every
project managers to estimate the scope, schedule and budget related to the project effectively for
gaining proper results.

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Question 2 project development
Question 2 (a)
1.About the organization
The aim of the paper is to focus on developing a project successfully that will be capable
of meeting the needs of the customers. Nexus infrastructure is a construction organization that
focuses on executing large projects for the purpose of providing facilities towards the customer.
The organization at present is designing a mobile phone network for providing better services
towards the residential areas. With the development of mobile phone network it will become
easy to execute the process.
2.Updated Business case and project charter
Business case
The aim of the project is to ensure that the organization Nexus infrastructure is capable of
developing the project by mitigating the issues that were identified at early stage. The project
was started with an estimated budget of around $5 million and was expected to be executed
within 3 years from its commencement. However it has been observed that the project failed to
meet its objective and was running 3 months behind the scheduled time. Thus there is a need to
have an updated business case based on which the mobile network tower can be implemented in
the residential location. The issues that were identified included the schedule creep, poor
sequencing of activities, and lack of critical project resources and improper management of
alternative services. There is a need to have proper resources that can ensure better services
towards the customers. Due to lack of proper project management techniques, the project failed
to meet its primary objective. Thus it is important to develop an enhanced an updated business

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case that will be capable of providing better support towards the organization. With updated
business case it will become easy to provide the requirements towards the stakeholders.
The project factors that will be considered in this case are that the project will be
commenced within 3 years and 2 months. The main reason behind increasing the schedule for
project execution is to avoid the project schedule creep. The overall budget is fixed to $5 million.
The phases that will be included in the development of mobile phone network include initiation,
planning, designing, implementation, execution and lastly the closure. Beside this the project will
be executed with following the agile project management methodology. Thus it is expected that
the project will be executed successfully.
Project purpose
The Nexus Company aims at developing a mobile phone network for the purpose of
providing better network facility towards the residents. The project is estimated to be executed
within 3 years without any delay. However in order to avoid scope creep, 2 months is added
towards the schedule. This will remove the chances of scope creep. The project will be executed
once the project design is developed effectively.
Measurable project objectives
Before starting a project it becomes very much essential to ensure that the project
objective has been determined at the early stage. In order to explain the project objective,
SMART tool is used. The below developed table is designed for understanding the measurable
project objectives.
Objective Sufficient project Executing project Executing project within

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management tools within time budget
Specific With proper tools
the risks can be
mitigated
Time must be
strictly followed
so that the scope
creep can be
avoided
The development of mobile
network tower must be
executed within the budget
Measurable Performance and
outcomes will be
estimated
Time of execution
will be
determined.
Within 3 years
and 2 months the
project should be
commenced
Project will be estimated
within $ 5 million
Achievable Risks will be
mitigated and
effective outcome
can be obtained
Time set by the
project managers
must be followed
for successfully
meeting the
project
requirement
In order to execute the
project within the budget, it
is important to manage the
project scope and schedule.
With proper
implementation of project
management
methodologies it will
become easy to meet the

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overall objective
Relevant Implementation
of proper project
management tools
will enhance the
output
Relevant
completely with
the project
The objective is liked with
proper implementation of
mobile network tower.
Time-bound The time period is
3 years and 2
months
The time period is
3 years and 2
months
The project will be
executed within 3 years and
2 months
Project requirements
Project requirements are needed to be analyzed at the early stage so that it can be
executed effectively within the estimated time period. Nexus infrastructure motive is to develop
a mobile network tower by mitigating the issues that were faced earlier. With proper
development of project component it becomes easy to execute the project. The requirements
related to the project enhancement are divided into functional and non-functional requirements.
The functional requirements that are associated with the project include managing the
nodes associated with the mobile network and maintaining the overall latency and connection
within the project development phase. Beside this the project needs several raw materials for
designing the network. Apart from this it is important to design the network with all the
necessary requirements. The other requirement includes the aluminum, steel, word, plastic and

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composite materials. The site manager should also focus on managing the connectivity with the
mobile network so that it can offer better access over the network.
Nonfunctional requirements include easy accessibility towards the network, offering
better feature towards the labor so that they can develop the network effectively. The mobile
network designed will provide better access towards residents and also ensure that no
environmental degradation has been taken place. The network is designed in such a way that it
won’t cause any harm towards the environment or to any animals.
Assumptions
The project mobile network tower is going to be carried out by Nexus infrastructure
within a fixed budget of $5 million. In addition to this, it is also assumed that the project will be
executed within the estimated time frame of 3 years and 2 months. All the resources will be
managed efficiently for providing better support towards the project development. With an
efficient project execution it will become easy to meet the needs of the organization.
Summary budget
The project phases are divided into 6 phases that includes initiation, planning, designing,
implementation, execution and closure. With the use of agile project management methodology
the project will be executed within $5 million. The chances of budget overshooting have been
mitigated with efficient management of the project resources and by organizing the project
activities more efficiently.
Stakeholder list
Task Name Cost

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Constructing mobile network $5,000,560.00
Phase 1: Project initiation $1,556,560.00
Project starting $48,000.00
identifying the goal $154,000.00
business case $139,200.00
performing financial feasibility study $64,800.00
designing blueprint of the network $120,000.00
check environmental factors $617,760.00
develop project charter $412,800.00
stating objective of the project $180,000.00
identifying resources $112,800.00
identifying stakeholders $120,000.00
Phase 2: Project planning $1,922,400.00
managing the fund $528,000.00
quality and resource managing $400,000.00
Establish the project baseline $192,000.00
Communication plan $374,400.00
cost plan $120,000.00