EVMS
Question 1
Cost Performance Index (CPI), as well as the Schedule Performance Index (SPI) and the Independent Estimate at Completion (IEAC), could be effectively used to control and monitoring the schedule and cost of a project. The CPI analyzes the cost efficiency of a project by measuring the practicability of completed work and comparing it to the costs involved. Thus, it reveals the amount earned from the expenses incurred in developing the project. Usually, it obtained by dividing the earned value by actual cost. If it results in a value greater than 1, then that project is termed as a success.
The SPI measures the progress of a project compared against the planned project schedule. SPI gives information on the time efficiency of the project by illustrating how close to the regular schedule the actual work is being completed. Computing the SPI involves dividing the earned value by the planned amount. Where and SPI value above 1 is obtained, one the project is found to be doing well. The (IEAC) tests the reasonableness of the cost estimate by assessing challenges in Estimate at Completion (EAC). As a result, the problems can be addressed to ensure a realistic out turn cost and schedule.
Question 2
I would use the Earned Value Management System (EVMS) as a tool to manage project risks and issues by including project risk factors in the EAC. However, the risks would only result in a schedule time increase when the threat manifests itself. Integrating risks with EVM provides early visibility into the range of estimates for schedule and costs and offers an understanding of the probability linked with individual forecasts for each. As a result, I would make a distinction between uncertainty associated with discrete events and the risks associated with schedules at time estimates and document them in terms of dollars. Finally, I would determine the cost of the IEAC to determine if it falls outside the statistical formula bounds.
I would use the Earned Value Management System (EVMS) as a tool to manage project risks and issues by including project risk factors in the EAC. However, the risks would only result in a schedule time increase when the threat manifests itself. Integrating risks with EVM provides early visibility into the range of estimates for schedule and costs and offers an understanding of the probability linked with individual forecasts for each. As a result, I would make a distinction between uncertainty associated with discrete events and the risks associated with schedules at time estimates and document them in terms of dollars. Finally, I would determine the cost of the IEAC to determine if it falls outside the statistical formula bounds.
I would use the Earned Value Management System (EVMS) as a tool to manage project risks and issues by including project risk factors in the EAC. However, the risks would only result in a schedule time increase when the threat manifests itself. Integrating risks with EVM provides early visibility into the range of estimates for schedule and costs and offers an understanding of the probability linked with individual forecasts for each. As a result, I would make a distinction between uncertainty associated with discrete events and the risks associated with schedules at time estimates and document them in terms of dollars. Finally, I would determine the cost of the IEAC to determine if it falls outside the statistical formula bounds.
I would use the Earned Value Management System (EVMS) as a tool to manage project risks and issues by including project risk factors in the EAC. However, the risks would only result in a schedule time increase when the threat manifests itself. Integrating risks with EVM provides early visibility into the range of estimates for schedule and costs and offers an understanding of the probability linked with individual forecasts for each. As a result, I would make a distinction between uncertainty associated with discrete events and the risks associated with schedules at time estimates and document them in terms of dollars. Finally, I would determine the cost of the IEAC to determine if it falls outside the statistical formula bounds.