Tree Trimming Project Analysis In this Ana ✓ Solved

In this analysis, I will be analyzing Thomas Johnson’s Christmas tree farming business. Thomas has a farm of Christmas trees that he shears for the holiday season. He has 24,000 Christmas trees that are sheared by hand by the workers he hires during the holiday season. He attended a project management course during the off-season and wondered about the use of Earned Value (EV) and if he was using EV when it came to his business.

For informational purposes, he agreed to a business deal with a customer that is going to pay him $30,000 to shear all 24,000 trees on his farm, with a partial payment after the project has commenced. Thomas figured that within those five days, 6,000 trees would be sheared, which would account for 25% of his trees, which he calculated would be a $7,500 payment for the first five days. This means every five days his customer would need to pay him $7,500, and Thomas must shear at least 6,000 trees every five days as well. According to Thomas’ plan and schedule, he will have sheared all 24,000 trees within 20 days.

Being that he already met the first five days and sheared 6,000 trees, he is currently on schedule. Earned Value is a method of monitoring a project plan to ensure it is on track for completion and it tracks work whether in process or completed. In this case, I do not believe Thomas is using EV properly. There is no tracking that shows how many trees were sheared each day, how many workers he had to accomplish shearing 6,000 trees, or whether he had workers work overtime.

Thomas needs to establish his budget for the project, which will allow him to figure his cost variance and schedule. Cost variance is summarized as the difference between the estimated cost of a project and the actual cost of the project. If he is at or below his estimated budget when the project commences, it is considered favorable. If he is above his estimated budget for the project, it is unfavorable.

Thomas knows what his customer is paying for the 24,000 trees but must determine how much it will cost to shear all trees, including costs for hiring laborers, equipment, and materials. With the known information, Thomas can schedule laborers to ensure 1,200 trees are sheared every day. This will give him an idea of how many laborers he needs and how much he pays them.

Now there are risks associated with this project, which include the risk of Thomas’ customer changing the scope of the project. To manage this, Thomas should be vigilant of any possible changes from day one and ensure he understands what the customer wants. Establishing a process for handling changes is crucial, including defining how changes will be implemented and what costs are incurred.

Thomas is using a traditional method of project management. However, he can use the Agile Project Management method to accelerate the project. Agile practices such as maximizing value, embracing change, and ensuring quality deliverables can help him complete the project more efficiently.

In terms of project performance, Thomas has shown a basic understanding of the tasks at hand. However, his planning is poor, and he does not properly assess risk management. By utilizing different processes that would increase his earnings and efficiency, he could better serve his customers and potentially increase his profitability.

Paper For Above Instructions

In the context of Thomas Johnson's Christmas tree trimming project, we must evaluate his scheduling efficiency, the employment of earned value measurements, budgeting procedures, and risk management strategies. The current agreement to shear 24,000 trees for $30,000, with an initial $7,500 payment after shearing 6,000 trees in the first five days, provides a framework for this analysis.

Schedule Compliance

To determine whether Thomas is on, below, or over schedule, we must examine his shearing rate. He needs to shear 6,000 trees every five days to complete the project within his 20-day plan. After the first five days, having trimmed 6,000 trees aligns with this schedule. Hence, as of now, Thomas is on schedule. However, any delay in progress in subsequent periods could jeopardize this timetable, pushing the project beyond the agreed timeline of 20 days, which would result in being off schedule.

Application of Earned Value

Earned Value (EV) management measures a project's performance against its planned progress. The formula to calculate EV is: EV = (Total Planned Budget) x (Actual Percent Completion). According to the initial plan, with the completion of 6,000 trees, Thomas achieved 25% of the project, indicating an EV of $7,500—a correct application of EV principles noted in his project management training. However, the absence of detailed tracking of daily productivity and labor utilization suggests he is not fully leveraging EV's potential in managing his project dynamically.

Setting Up a Schedule and Cost Variance

For Thomas to establish an effective schedule and measure cost variance, he should first accurately document his planned costs against actual costs incurred. A thorough budget must be formulated that encompasses all overheads, including labor, equipment, materials, and any potential variances. The Cost Variance (CV) can help gauge performance by comparing estimated costs with actual costs. Calculating CV involves subtracting actual costs from planned or budgeted costs. A CV greater than zero is favorable, indicating under-budget performance.

Change Management in Project Scope

To handle changes in project scope—such as modifications requested by the customer regarding tree shapes—Thomas should establish a clear process. Initially, it is essential for him to fully comprehend the requirements of the customer. Any proposed changes should be documented, analyzed for potential impacts, and communicated to stakeholders. An open dialogue about the implications of changes helps in decision-making: either adjusting the project scope accordingly, negotiating with the customer, or setting definitive boundaries against change requests that threaten project viability.

Adopting Agile Methodology for Project Acceleration

Transitioning to an Agile Project Management approach could provide Thomas with the flexibility needed to adapt to changes efficiently while enhancing stakeholder collaboration. Agile methodologies emphasize iterative progress, allowing for regular feedback from stakeholders, ensuring that the final product meets customer requirements more closely than traditional methods which often involve linear processes. By embracing Agile principles, Thomas can better manage project phases and expedite completion timelines without compromising quality.

Performance Evaluation and Recommendations

In summation, the performance of Thomas's project, though initiated correctly, shows signs of potential inefficiencies due to inadequate tracking of work processes and insufficient budgeting mechanisms. Recommendations for improving his project management strategies include implementing detailed tracking systems for labor and resource allocation and adopting Agile methodologies to enhance flexibility and responsiveness to scope changes. By enhancing his planning, tracking, and risk management strategies, Thomas can not only improve project execution but ultimately boost profitability and customer satisfaction.

References

• Accounting Coach. (n.d.). What is a Cost Variance? Retrieved from [source]
• Clark, T. (2014). How to Manage Scope Creep – and Even Prevent It From Happening. Retrieved from [source]
• Fernandez, D., & Fernandez, J. (2008/2009). Agile Project Management – Agilism Versus Traditional Approaches. Retrieved from [source]
• Haughey, D. (n.d.). What is Earned Value? Retrieved from [source]
• Wilson, L. (2014). Understanding Earned Value: A Measure of Project Performance. Retrieved from [source]
• Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide). Newtown Square, PA: Project Management Institute.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Hoboken, NJ: Wiley.
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