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Project Management

(MGT 3125)Chapter 13

Case: Scanner project

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Project Management (MGT 3125)

Nayomi Ekanayake

M00436434 1 | P a g e

Chapter 13

Case: Scanner project

You have been serving as Electroscan's project manager and are now well along in the project. Develop a

narrative status report for the board of directors of the chain store that discusses the status of the project

to date and at completion. Be as specific as you can using numbers given and those you might develop.

Remember, your audience is not familiar with the jargon used by project managers and computersoftware personnel; therefore, some explanation may be necessary. Your report will be evaluated on your

detailed use of data, your total perspective of the current status and future status of the project, and your

recommended changes (if any).

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Project Management (MGT 3125)

Nayomi Ekanayake

M00436434 2 | P a g e

The current status of the Scanner project is that at present the planned value of the

project was 420; however, the current earned value is only 395. This gives an estimate

of the project actually competed. There have been cost overruns and this is reflected in

the actual cost 476 incurred till now. The project is behind schedule by 25.. Moreover,

there is an unfavorable cost variance of 81; this means that till date there has been a

cost overrun of 81. As far as the future of the project is concerned, the project has

been budgeted to cost 915 however, at this stage it is estimated that the cost at

completion will be 1103.

In this project the Hardware planned value had been 92, however the earned value isonly 88, but the actual cost incurred is only 72. There is an unfavorable schedule

variance of 4, a favorable cost variance of 16. In light of these figures even though the

budget at completion for hardware was 260, the estimate at completion is only 213. It

was planned that till now the planned value of the operating system would be 195

however, the earned value till now is only 150, the actual cost incurred is 196. There is

a schedule variance of 45 that means the operating system is an important cause of

delay in the project. The budget at completion was 330 but now the estimated at

completion is 431.

In case of utilities the planned value till now is 87 however, the earned value till date is

108. In case of utilities, the actual cost incurred is 148. Most importantly, there is a

positive schedule variance of 21 that means that the utilities are before time. There is

however a serious cost overrun. The cost variance is 40. The budget at completion

was 200 however, now the estimate at completion is 274.

The planned value till now in case of system integration is 46 however, till now the

earned value is 49. The actual cost incurred is 60. The schedule variance is positive 3,

this means that system integration is proceeding before time. However, there is anegative cost variation of -11. This means there is a cost overrun. In future the

estimate at completion is 153 but the budget at completion is 125.

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Project Management (MGT 3125)

Nayomi Ekanayake

M00436434 3 | P a g e

1. The Coding Team is in trouble on cost (-$35,000) and schedule (-$40,000). At the current rate

of efficiency the coding team is forecasted to be approximately $136,000 over budget. Can

things be changed?

2. The Development Team is also in trouble with CV of -$81,000 and forecasted to be

approximately $117,000 over budget at completion.

3. The Operating System deliverable is forecasted to be approximately $101,000 over budget at

completion.

4. The Utilities deliverable is forecasted to be approximately $74,000 over budget at completion.

5. Given that the project is about 43% complete and they are only getting about $.83 of work for

each actual dollar, there is opportunity to recover some forecasted overrun.

6. The VAC is -$188,000 ($915,000 - $1,103,000).