Tree Trimming Project Analysis Jeremy Harlow University of ✓ Solved

Tree Trimming Project Analysis

Earned value is of great importance in the management and helps to measure the project performance. It is a systematic management process that can be used to find variables in projects based on the comparison of the work performed with the work that has been planned. Earned value (EV) is important and widely used by project management to forecast on the project through determining the schedule control. The project baselines form an essential component of the EV and are regarded as the reference point for all project management activities, providing good quantitative data that is essential for project decision-making.

Thomas Johnson is a timber and Christmas tree farmer who attended a project management class during the last year's off-season. During the class, they were taught the concept of earned value (EV) and wondered if he is utilizing the concept properly. Thomas conducts training and also hires new crew members to work in the fields of Christmas trees for the upcoming holiday season. During the training, each worker uses large shears to shape the branches of the tree into a cone shape, making it attractive for customers. Thomas's Christmas trees presently in the field are approximately 24,000.

He agrees with customer Tom Jones to a $30,000 lump-sum contract for shearing all the trees present in the field. Part of the agreement stipulates that Tom receives a partial payment about 5 days after starting the project. He estimated that the total number of sheared trees to be approximately 6,000. The actual number of trees is taken as a percent of the total number of trees that have been sheared, multiplied by the percent completed by the total contact for the partial payment.

Thus, the amount of money for partial payment can be calculated: (6,000/24,000) amounts to 25% of the trees trimmed. The total amount to be paid for the five days would be (0.25 * $30,000), making it a total of $7,500 for this period. To determine whether Thomas is on schedule or behind schedule, the amount paid will be used to compare against the expected payment. Based on the findings, Thomas is on schedule, as there are 6,000 trees to be sheared for every five days, based on the total for the first week.

The project will be completed within a month. The first payment should be 25% of the total expected price to be paid. Earned values are defined as the total budgeted work scheduled. It is unique to project monitoring analysis, considering that it quantifies the current performance of the project. Earned value is significant in this analysis as it helps measure and monitor the level of work that has to be completed against the plan, allowing for a quick assessment of whether they are behind schedule or operating over budget.

To determine the estimated earned values, one can calculate the EV of a project by multiplying the percentage of the completed project by the total project budget. The largest benefits of the earned value result from completing cost and schedule variance. The formula for earned value (EV) is as follows: EV = (activity of the total budget) (actual % of completion) = (0.25 30,000) = $7,500. In other instances, earned value is referred to as the budgeted cost of work performed, with the total earned value representing the actual work completed versus the budgeted cost over a specified time frame.

From the calculations provided, it is clear that Thomas is using the earned value as he was taught in his project management course. The cost variance (CV) is related to the project budget. The CV represents the difference between the actual and expected costs, calculated by determining the difference between the earned value and the actual cost.

When a project is scoped and a budget is set, bids can be requested to address the schedule. In order for Thomas to set up a schedule and calculate cost variance, he may need to handle project scope adjustments, such as changes in the shape of the trees that Tom wants. Tom must clearly understand any changes, assess their impact on the project, and utilize formal processes to handle them.

Change control is vital, especially when managing larger programs or portfolios, given the potential far-reaching consequences of unmanaged changes within planned environments and business-as-usual activities. If Thomas has been using the traditional method of project management, there are various ways he could accelerate project completion, such as using Agile methodology.

Agile is a process through which a team can manage a project by breaking it into stages, involving constant collaboration with stakeholders while improving iteratively at every stage. Agile often starts with the client describing the end product and the intended use, clarifying customer expectations to the project team. Once work begins, teams cycle through planning and executing while continuously refining based on feedback.

In conclusion, earned value is of great significance to any project. After attending the course on EV, Thomas has been effectively applying it. It can be confirmed that his project is on schedule, thus avoiding overspending or underspending.

References

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