ENG8208 - Engineering Project Management: Auburn Stadium Project Plan

This report provides a detailed analysis of earned value management (EVM) applied to two distinct projects, highlighting the significance of cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI) in assessing project performance. Project 1 is shown to be over budget and behind schedule, while Project 2 demonstrates better performance, being under budget and ahead of schedule. The report also addresses the limitations of EVM, such as its inability to ensure project quality during execution and potential confusion arising from multiple calculation methods. Furthermore, the report includes a revised project plan for the Auburn Stadium construction, outlining key stakeholders, milestones, and budget allocations for various tasks, from documentation review to hardware installation and final cleaning. The revised plan aims to address previous setbacks due to resource constraints and stakeholder performance issues, ensuring the project's successful completion.

Running head: ADVANCED ENGINEERING PROJECT MANAGEMENT
Advanced Engineering Project Management
Name of the Student
Name of the University
Author’s note

1ADVANCED ENGINEERING PROJECT MANAGEMENT
Table of Contents
1. Earned Value Management....................................................................................................2
1.a. Project 1...........................................................................................................................2
1.b. Project 2..........................................................................................................................2
1.c. Comparing Project 1 and Project 2..................................................................................3
1.d. Earned Value Management as a useful tool....................................................................4
2.a. Developing Revised Project Plan........................................................................................6
2.1. Fulton Hogan Pty Ltd and Auburn Stadium Revised Construction....................................6
2.2. Revised Project Charter.......................................................................................................7
2.3. Auburn Stadium Construction Project Plan......................................................................10
Project integration management...........................................................................................10
Project scope management...................................................................................................11
Project schedule management..............................................................................................12
Project cost management......................................................................................................16
Project quality management.................................................................................................18
Project resource management..............................................................................................19
Project communications management..................................................................................19
Project procurement management........................................................................................20
2.b. Report to Project Sponsor.................................................................................................20
3. References............................................................................................................................22

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1. Earned Value Management
1.a. Project 1
Earned Value (EV) = BAC x Percentage of Work Completed = $2,100,000 x 26% =
$5,46,000
Cost Variance (CV) = EV – AC = $5,46,000 - $6,50,000 = - $1,04,000
Schedule variance (SV) = EV – PV = $5,46,000 - $6,00,000 = - $54,000
Cost Performance Index (CPI) = EV / AC = $5,46,000 / $6,50,000 = 0.84
Schedule Performance Index (SPI) = EV / PC = $5,46,000 / $6,00,000 = 0.91
EAC = BAC / CPI = $2,100,000 / 0.84 = $2,500,000
EAC = AC + (BAC – EV) = $6,50,000 + ($2,100,000 - $5,46,000) = $2,204,000
EAC = AC + [(BAC – EV) / (CPI x SPI)] = $6,50,000 + ($15,54,000 / 0.7644) =
$2,682,967.032
1.b. Project 2
Earned Value (EV) = BAC x Percentage of Work Completed = $2,100,000 x 38% =
$7,98,000
Cost Variance (CV) = EV – AC = $7,98,000 - $6,50,000 = $1,48,000
Schedule variance (SV) = EV – PV = $7,98,000- $6,00,000 = $1,98,000
Cost Performance Index (CPI) = EV / AC = $7,98,000 / $6,50,000 = 1.227 = 1.28
Schedule Performance Index (SPI) = EV / PC = $7,98,000 / $6,00,000 = 1.33
EAC = BAC / CPI = $2,100,000 / 1.28 = $1,640,625

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EAC = AC + (BAC – EV) = $6,50,000 + ($2,100,000 - $7,98,000) = $1,952,000
EAC = AC + [(BAC – EV) / (CPI x SPI)] = $6,50,000 + ($13,02,000 / 1.7024) =
$1,414,802.631
1.c. Comparing Project 1 and Project 2
In Project 1, the Cost Variance (CV) is - $1,04,000. Since, the CV is less than 0,
Project 1 is over budget. In Project 2, the Cost Variance (CV) is $1,48,000. Since, the CV is
greater than 0, Project 2 is under budget.
In Project 1, the Cost Performance Index (CPI) is 0.84. Since the CPI is less than 1;
Project 1 is over budget. In Project 2, the Cost Performance Index (CPI) is 1.28. Since the
CPI is greater than 1; Project 2 is under budget.
In Project 1, the Schedule Variance (SV) is - $54,000. Since the SV is less than 0;
Project 1 is behind schedule. In Project 2, the Schedule Variance (SV) is $1,98,000. Since the
SV is greater than 0; Project 2 is ahead of schedule.
In Project 1, the Schedule Performance Index (SPI) is 0.91. Since the SPI is less than
1; Project 1 is behind schedule. In Project 2, the Schedule Performance Index (SPI) is 1.33.
Since the SPI is greater than 1; Project 2 is ahead of schedule.
In Project 1, EAC is $2,500,000, $2,204,000 and $2,682,967.032 respectively. In
Project 2, EAC is $2,500,000, $2,204,000 and $2,682,967.032.
Therefore, considering the project performance, it can be concluded that the Project 1
is over budget and is running behind schedule whereas the Project 2 is under budget and is
running ahead of schedule.

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1.d. Earned Value Management as a useful tool
There are several limitations of earned Value Project that can be observed while
conducting a project. The limitations associated with the project are-
i. The Earned value management only monitors that the project is on time or not. The project
manager checks whether a particular work is being completed within the stipulated time or
budget or not. However, the quality of the project cannot be detected while the project is in
progress. The quality of the project can only be measured only after the entire project gets
completed.
Thus, the quality of the project can be addressed at the time of hand over. If the client
is not satisfied or the project fails, then it can be concluded that the project manager and the
associated stakeholders of the project have not worked well. In the other scenario, if the
project becomes successful, then it can be concluded that the project manager and the
stakeholders have done the work efficiently.
ii. If the employees are trained in Earned Value Management, confusions will arise among
those employees to choose the best mathematical formula. Some employees can suggest
using a different mathematical formula while some other employees can suggest using a
different project track. Some Earned value Management formula represents project actual
budget and the completion, while another formula represents the cost variance and the
estimate of project completion. Moreover, the earned value management cannot be used on a
continuous basis on a particular project. The Earned Value Management is applicable to
smaller projects and simple projects. Earned Value Management also does not specify what is
exactly needed for the project to achieve a definite functionality.

5ADVANCED ENGINEERING PROJECT MANAGEMENT
Confusions and conflictions among the stakeholders can be addressed at the time of
the execution of the project. It is the responsibility of the project manager to prepare a project
plan early and must take approval from the stakeholders. Otherwise confusions will arise.
iii. In an enterprise all the employees are not trained in Earned Value Management, Thus
Earned Value Management is out of scope for certain employees or stakeholders. The
stakeholders require appropriate training so that they can use the Earned Value Management
effectively otherwise the project will fail. The project stakeholders understand the charts and
not the complex mathematical formula. The stakeholders expect the project manager to
explain the project plan in charts and simple steps. In this way, they can acknowledge the
project deliverables.
Thus, the communication between the project manager and the stakeholders must be
smooth and straightforward, and the stakeholders should understand the project deliverables.
The stakeholders like the simple graphs and chart and not the complicated mathematical
formula, the limitation can be addressed while the project manager explains the project plan
and the budget figures to the stakeholders.
iv. There are issues related to CPI calculation and SPI calculation. CPI remains same for the
entire project until and unless AC or EV changes in a significant way. CPI depends on the
AC for the accuracy. CPI will give inappropriate value if AC excludes all the appropriate
costs and the payments. Again, the SPI can give unreliable value if any ahead-of-schedule
noncritical task outweighs any behind-of-schedule critical task.
The issues related to CPI and SPI can be addressed at the time of the project
execution. The stakeholders can acknowledge thee issues.

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2.a. Developing Revised Project Plan
2.1. Fulton Hogan Pty Ltd and Auburn Stadium Revised Construction
Fulton Hogan has more than 80-year’s expertise in mining, civil construction and land
development infrastructure. They carry out their operations in South Pacific, New Zealand
and Australia. Julius Fulton and Robert Hogan in Dunedin founded the company in the year
1933. Fulton Hogan reported an annual profit of NZ$96.5 million. They have currently over
1000 employees in Australia working on Australia construction projects. They have over
5000 employees working in New Zealand, and those employees are working on New Zealand
construction projects. Recently they have taken the responsibility of revised construction of
the Auburn Stadium.
Jordan-Hare Stadium was previously known as Auburn Stadium. Auburn Stadium is
the playing venue for Auburn’s football team. The stadium is located on the campus of
Auburn, Alabama. The current seating capacity of Auburn Stadium is 87, 451. The Stadium
is known as the 10th largest stadium in the NCAA.

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2.2. Revised Project Charter

8ADVANCED ENGINEERING PROJECT MANAGEMENT
Background
The Director of the Auburn Stadium has decided to refurbish the Auburn Stadium.
However, due to lack of stadium construction resources like steel, lumber, sand and cement,
the project is left unfinished. Some stakeholders have failed to deliver their best, and the
quality of the project degrades. The project manager decides to make some alterations in the
stakeholder list. The project manager wants to initiate the unfinished task and want to finish
the refurbishment work of the stadium. The stadium construction project is scheduled for 3
years. The project is already running 2 months late. Moreover, due to lack of construction
resources and skilled labourers the construction project suffers. To repair stadium roof and
floor and to manage all the resources and the skilled labourers the project will be delayed
extra 1 month. The project manager has developed a revised project plan. The stakeholders
will follow the project plan, will work accordingly, and will complete the construction project.
Objectives
 To arrange all the construction materials required for the construction like steels,
lumbers, sand and cement
 To alter unskilled workforce with a skilled workforce
 To finish the task as early as possible
Scope
The project manager has been given the responsibility to refurbish the Auburn
Stadium. The project manager has prepared a revised project plan for the project. The project
plan will contain the following summary tasks, which the stakeholders need to follow. The
primary tasks that need to be carried out by Fulton Hogan Pty Ltd, Revised Documentation

9ADVANCED ENGINEERING PROJECT MANAGEMENT
Review, Bids and Contracts Revision, Construction Project Backlog. The stakeholders will
require about one and a half month to clear all the backlogs associated with the project. After
the clearance of the backlog, they will set up utility service of the stadium. Later they will
carry out the improvement works for the Auburn Stadium. The stakeholders will install the
hardware, paint the stadium and finally will clean the Auburn Stadium. In this way, they will
prepare the final project.
Key Stakeholders
Fulton Hogan Pty Ltd Construction Department, Fulton Hogan Pty Ltd Construction
Subcontractor, Fulton Hogan Pty Ltd Mechanical Subcontractor, Civil Engineer, Builder,
Field Superintendent, Auburn Stadium Sponsor, Wood Machinist, Project Manager, Mason,
Electrician, Plumber, Sales Department, Sediment Controlling Inspector, Cleaning Staff,
Content Writer, Law Officer, Fire Extinguishing Staff, Painter and Decorator are the
stakeholders associated with the project.
Project Milestones
Task Name Expected Start
Auburn Stadium Construction Revised Plan Fri 13/04/18
Milestone 1: Completion of Stadium Construction Reinitiating by Fulton
Hogan Pty Ltd Thu 26/07/18
Milestone 2: Completion of Revised Document Review Thu 13/12/18
Milestone 3: Completion of Bids and Contracts Revision Thu 06/02/20
Milestone 4: Completion of Construction Project Backlog Thu 09/01/20
Milestone 5: Completion of Setting Up of Utility Service of Stadium Thu 16/04/20
Milestone 6: Completion of Improvement Works for Auburn Stadium Thu 30/07/20
Milestone 7: Completion of Hardware Installation Thu 24/09/20
Milestone 8: Completion of Painting of Stadium Thu 17/12/20
Milestone 9: Completion of Cleaning of Auburn Stadium Thu 04/02/21
Milestone 10: Completion of Project Thu 08/04/21

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Project Budget
Task Name Cost
Auburn Stadium Construction Revised Plan $255,640.00
Stadium Construction Reinitiating by Fulton Hogan Pty Ltd $36,360.00
Revised Documentation Review $47,560.00
Bids and Contracts Revision $69,000.00
Construction Project Backlog $17,520.00
Post-Construction Stadium Works $27,080.00
Setting Up Utility Service of the stadium $27,080.00
Improvement Works for Auburn Stadium $27,600.00
Hardware Installation $10,240.00
Painting of the Stadium $8,640.00
Cleaning of Auburn Stadium $4,200.00
Project Closure $7,440.00
Approval Signatures
[Name], Project Client [Name], Project Sponsor [Name], Project
Manager

11ADVANCED ENGINEERING PROJECT MANAGEMENT
2.3. Auburn Stadium Construction Project Plan
Project integration management
Project Integration Management involves collection of procedures that are needed to
assure that the projects’ elements are coordinated. The project plan defines list of activities.
At first, the sales manager prepares the revised sales agreement, after that the project manager
will prepare the contract plans for the stadium. The project manager will revise the contract
specifications for the construction of the stadium. Later the project manager will finalise the
plan for the constructing the Auburn Stadium, will finalise the specifications required for the
stadium construction. The civil engineer will print the design of the construction. The revised
review of bids will be done by the construction department of Fulton Hogan. Again, the
construction subcontractor will carry out the revised permits for the construction of Auburn
Stadium Construction. The field superintendent will visit the site and will supervise the site.
All the project activities must be conducted one after another and they are interrelated. After
the revised documentation review, bids and contracts revision, the construction project
backlog will be covered.
The sales manager will order the extra steel, extra lumber, order sands and cements.
The masons and the builders will rectify the defects in the roofs and the floors. The project
manager will rearrange the stakeholders and will appoint for the project. The utility services
of the stadium will be set up the stakeholders. The plumber will set up the water supply
system. The electrician will set up the electric supply at Auburn Stadium. The mechanical
engineer will set up the hardware for the stadium. The stadium will be painted. Finally the
cleaning staff will clean the stadium.
Project scope management
WBS Task Name Duration Start Finish