Project Management Report: Risk, EVM Analysis, and Project Duration

This report provides a comprehensive analysis of a project management scenario, addressing key aspects such as project network diagrams, EVM reports, and risk registers. The report begins with an introduction to project management, outlining its core stages and methodologies. It then presents a detailed project network diagram, illustrating the interrelationships between project activities. The project duration is calculated, followed by an in-depth EVM report, including the calculation of Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), Cost Performance Index (CPI), and Estimated at Completion (EAC). The analysis reveals that the project is behind schedule and over budget. Furthermore, a risk register is developed, identifying both negative and positive risks, along with their probabilities, impacts, and risk ratings. The report concludes with a summary of the findings, emphasizing the importance of proactive project management and risk mitigation strategies to ensure project success. The report highlights the importance of monitoring progress and controlling costs to prevent overruns.

Project management
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Table of Contents
INTRODUCTION...........................................................................................................................3
Question 3........................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Project management refers to process or method of completion of particular project in
specified time period and achieving goals and objectives. It defines all variables that needs to be
delivered in specified budget and constraints (Cerdeiral, and Santos, 2019). Basically, there are
5 stages in PM that is initiation, planning, execution, monitoring and closure. Along with that,
there are various types of methods as well which is applied in completion of project. It depends
on type and nature of project that what method is suitable. A project management plan describes
activities which are to be performed within project. There are many things which needs to be
calculated and done in order to maintain progress of project. It allows in making things easy to
proceed along with schedule and budget.
In this report a network diagram will be made. Besides that, EVM report is prepare that
include SV, CV, SPI, CPI and EAT. Also, risk register is prepared that contain various types of
risk.
Question 3
1) Project network diagram
It is important to develop a network diagram of project through which it becomes easy to
find out what activities is to be carried out. Besides that, it shows graphical representation of
project and how activities are inter related to each other. Moreover, arrows and direction in that
define flow of activity (Galli, 2018). Thus, on basis of that project manager do planning and
prepare schedule. Alongside, tasks are prioritised which enable in smooth performing of
activities.
Task Name Duration Start Finish Predecessors
business requirement doc 7 days Tue 1/19/21 Wed 1/27/21 2
functional requirement doc 9 days Wed 1/13/21 Mon 1/25/21 3
security requirement doc 4 days Fri 1/15/21 Wed 1/20/21 4
business requirements
imple 9 days Thu 1/28/21 Tue 2/9/21 5,6
functional requirement impl 12 days Tue 1/26/21 Wed 2/10/21 6
cross check business
requirements 7 days Wed 2/10/21 Thu 2/18/21 8
security requirement impl 10 days Thu 2/11/21 Wed 2/24/21 7,9
integrate refine check all 10 days Thu 2/25/21 Wed 3/10/21 10,11
beta ready for test 0 days Wed 3/10/21 Wed 3/10/21 12
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2) Calculate project duration
The total duration of project is 116 days
3) Draw S curve
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4) EVM report by calculating it
Total budget- 91500
Actual cost- 41500
Planned value- 41600
Earned value- 37972.5
a) Schedule Variance – It shows amount by which task is behind or ahead of project schedule. In
this if value is negative it means task is behind schedule, positive means task is ahead of
schedule and zero means that task is as per schedule. Hence, formula for calculating SV is EV –
PV (Heldman, 2018)
37972.5 – 41,600 = -3627.5
It can be stated that SV value is -3627.5 which show negative value and it means that task
is behind schedule. So, it requires project manager to ensure task is on schedule.
b) Cost Variance- This is similar to schedule variance in which it indicates that whether project
task is under or over budget. Thus, if value is negative it means task is over budget, positive
means task is under budget and zero means that task is as per budget. Hence, formula for
calculating CV is EV – AC
37972.5 – 41500 = -3527.5
It shows CV value is negative -3527.5 that means cost is over budget as per budget.
Therefore, project manager is required to control cost and ensure that project does not goes over
budget (Jiang, Klein, and Fernandez, 2018).
c) Schedule performance index – It measure progress of project that is achieved against
planned one. So, having a value greater than 1 shows more work is completed as planned and
value showing less than 1 indicate less work is completed than planned. The formula for
calculating SPI is EV/PV.
37972.5 / 41600= 0.91
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From above it is found that SPI is 0.91 which is bad and it shows that project work done
is not as per planed. It means project is behind schedule.
d) Cost Performance Index- It measure value of work done as per actual cost incurred. Thus,
having value more than 1 shows cost is less than as per budget and value of less than 1 indicate
cost incurred is high than budget. However, formula for calculating CPI is EV/AC
37972.5 / 41500= 0.915
Here, it is found that CPI value is 0.91 that is bad because her cost incurred in higher than
budget. Therefore, if project is done continuous as per this than it will be overbudget in future.
e) Estimated at cost – This shows project manager that what will be overall cost of project. It is
necessary to calculate so that cost can be controlled at end of project and proper planning is
done. Basically, it helps in forecasting of cost of project. The formula for it is = total project
budget / CPI (Mainga, 2017)
91500/ .915= 100,000
Here, overall cost of project forecasted is 100,000 that shows that project is going to be
overbudget in future. It is because total budget of project is 91500. However, there may be
addition of 8500 in budget. Hence, it is essential that manager must monitor overall progress of
project so that it does not go overbudget. Furthermore, it requires to work as per schedule made.
It will make it easy to estimate time and budget of each task and then do tasks as per it. In this
way project will be completed within budget.
5) Develop risk register
It is necessary to do risk analysis so that it can be identified what risk might occur in
project. This enables in taking relevant measures to mitigate impact of risk. Furthermore, it
provides info risk impact, its probability, responsibility etc. With that it becomes easy to control
and mitigate impact of risk (Ogunde, and et.al., 2017). The risk register is as below :
Risk description Probability Impact Risk rating
1= low
Action
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5 = high
Negative risk
Increase in cost 2 It will impact
on project in
negative way
as more cost
will be
required to
complete it.
Moreover, it
will also result
in delay of
project as
well.
3 In this
estimated
budget will be
prepared to
ensure
resources are
properly
allocated.
Lack of resources 3 The impact
will be
negative as
further
activities will
not be
performed due
to lack of
resources
(Turner and
Ledwith,
2018). Hence,
it will result in
delay of
project.
4 There will be
proper
monitoring of
resources and
its utilisation
Delay in project 2 The impact 5 A project
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will be
negative as it
will require
more time to
finish
activities.
Therefore,
overall cost of
project will
also increase.
schedule will
be prepared to
estimate time
required for
each activity.
Positive risk
Technical failure in
installation
3 There will be
positive
impact as it
will help in
meeting
stakeholder
requirement
by eliminating
errors.
2 All system and
software will
be tested in it
Breach of security 4 It will enable
in taking more
strong
measures to
ensure security
is not breached
and
maintained
(Schultz and
et.al., 2019).
2 The software
will be
checked and
tested
properly.
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It is necessary to control and mitigate risk so that project is not impacted in negative way
and it is completed on time. Besides that, it enables project manager to deal with all risk in
effective way by assigning responsibilities and taking corrective measures and actions. Also, it
gives a detailed description about all risk and how it can impact on overall project. This makes it
easy for manager to analyse risk and then take proper actions (Cerdeiral, and Santos, 2019).
Risk register is also used in finding out impact and probability of occurrence of risk and how it
can impact on project. Thus, it ensures that all measures are identified properly and risk can be
mitigated in effective way.
CONCLUSION
It can be summarised that the network diagram shows graphical representation of project
and how activities are inter related to each other. Moreover, it includes arrows and direction in
that define flow of tasks. Also, overall project duration is 116 days. Also, SV and CV is negative
-3627.5 and -3527.5 so project is not as per schedule as well as it is over budget. Besides that,
SPI and CPI is 0.91 and 0.915. So, project work done is not as per planed and cost incurred is
higher than budget. It requires manager to take necessary steps to ensure project is as per
schedule. However, estimated at cost (EAC) is 100,000 so project is going to be overbudget in
future. Along with that, there are different risk which can occur within project such as increase in
cost, delay in project, lack of resources, etc.
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REFERENCES
Books and journals
Cerdeiral, C.T. and Santos, G., 2019. Software project management in high maturity: A
systematic literature mapping. Journal of Systems and Software, 148, pp.56-87.
Galli, B.J., 2018. Can project management help improve lean six sigma?. IEEE Engineering
Management Review, 46(2), pp.55-64.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley &
Sons.
Jiang, J.J., Klein, G. and Fernandez, W.D., 2018. From project management to program
management: an invitation to investigate programs where IT plays a significant
role. Journal of the Association for Information Systems, 19(1), p.1.
Mainga, W., 2017. Examining project learning, project management competencies, and project
efficiency in project-based firms (PBFs). International Journal of Managing Projects in
Business.
Ogunde, A., and et.al., 2017. PROJECT MANAGEMENT A PANACEA TO IMPROVING
THE PERFORMANCE OF CONSTRUCTION PROJEC. International Journal of Civil
Engineering and Technology (IJCIET), 8(9), pp.1234-1242.
Schultz, C., and et.al., 2019. How project management and top management involvement affect
the innovativeness of professional service organizations—an empirical study on
hospitals. Project Management Journal, 50(4), pp.460-475.
Turner, R. and Ledwith, A., 2018. Project management in small to medium‐sized enterprises:
fitting the practices to the needs of the firm to deliver benefit. Journal of Small Business
Management, 56(3), pp.475-493.
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