Project Management Systems
Week 4: Planning and Monitoring the Projects:
Cost, Budget, and Earned Value
Jan 22-28, 2012
The Huntsville Plant Project
Planning and Monitoring Costs, Budget and Earned Value Analysis
It is important that the SEITZ Corporation understands our progress in relation to both the project team and the SEITZ Corporation’s strategic goals and objectives, regarding the progress of the Huntsville plant. As a continued effort to report the progress that is being made on the plant project we would like to report how our project team is planning and monitoring costs, budget and earned value.
As the project manager, I have used Key Performance Indicators ...view middle of the document...
The board of directors gave the project team a budget of $2,750,000 to complete the project. Based on the current budgeted tasks and allocated resources we are left with $118,532 to complete the remaining tasks.
When factoring the budget I used ‘Top-Down’ estimating due to several variables being unknown at this point. KPIs are used in a top-down command –and-control fashion to guide and control people’s behaviors and actions. Measures are used to set goals or rules, to objectively assess the achievement of these goals and to provide feedback on any unwanted variance between achievements and goals. (Marr, B. 2010)
In addition to monitoring the costs associated with the tasks it is important that I, as the project manager, continue to monitor and control the performance of earned value of the tasks completed and allocated resources to identify whether we remain on schedule and within budget. Once we complete the budget for the remaining tasks I will be able to identify the cost variance and schedule variance to identify tasks that are in danger of not...