arun rajan case report

8/8/2019 Arun Rajan Case Report

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Introduction

The objective of this report is to find out if the project according to the current

schedule can be completed in time before the holiday season. The project needs to be

completed at least a week after the season which is the first week of December. The

variance in cost and the difference in duration is also checked for. The report also

checks if the new bundling requirement can be inculcated.

Analysis of present situation

To analyse the current progress of the project as of 26 th August, we need to find the

expected cost and schedule of the project. For this we need to study the current trend

of the project with respect to the baseline done by Mr. Robertson and the information

inferred from the study is given below:

As of 26th August the actual cost of work performed was found to be $202,993.30, the

budgeted cost of work performed is $191,732.42 and the budgeted cost of work

scheduled is $301,620.00. The estimated cost variance of the project is -$11,260.88.

Since the cost variance is negative the variance of the cost is over the estimated

budget.

The scheduled performance index which is the ratio of the BCWP and BCWS is 0.64

and the cost performance index which is the ratio of BCWP and ACWP is 0.94.

If the scheduled performance of a project is found to be less than 1 then the project is

said to be behind schedule and if the cost performance index of a project is below 1

then the project is said to be over the budgeted cost.

In the case of this project both the SPI and CPI are below 1 which means that the

project is behind the schedule in terms of the duration which means that the project

cannot be completed before the thanksgiving and that the project when completed

will be over the estimated budget. The Cost Schedule Index of the project is the

product of SPI and CPI which for this project is as per the current schedule is 0.60.

The further the CSI is from 1.0, the less likely the project recovery becomes. Since

the CSI is 0.60 there is at least 60% chance that the project recovery can be done.

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The above graph shows the relation between the actual and the budgeted cost. Here

the blue line which is the actual cost of the work performed goes above the line of the

budgeted cost of the work performed which is the violet line. This shouldn’t have

happened in a good project as this shows the variation of the budget in the works

performed which is greater and which means that the cost used is more than the cost

allocated.The orange line shows the budgeted cost of the scheduled work as of august

2003

The expected duration and the finish date of the project can be found out by using MS

projects and the result obtained from MS projects shows the duration of the project to

be 141 days and the finish date of the project to be the 8 th of December. Therefore the

project cannot be completed before the thanksgiving season.

The critical paths in the project are

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1.1.1 Manage Project

1.4.8 Design ERP Interface

1.7.8 Build ERP Interface

1.8.1.2 Perform Phase 2 Testing

1.8.2 Perform System Testing

1.8.3 Perform Validation Testing

1.9.1 Implement System

1.9.2 Deploy to Production

1.9.3 Project Wrap-up

Since there are a lot of critical tasks in the project the risks of the going over schedule

is more.

Calculating the expected duration without using MS projects gives the value as 198

days which is the ratio of expected duration to the value of SPI. So the expected

duration of 141 days can be taken as a more optimistic approach can be used rather

than an pessimistic approach considering all the above findings.

Therefore based on all the above observation on the current status of the project the

project will not meet its deadline of completing before the thanksgiving weekend on

the allocated budget.

Action Plan

To get the project back on track it is important to add more resources . Because of our

limitation in time we will have to add trained resources as to get the project back onschedule. The contracted employees on the other hand will incur more cost to the

company in terms of cost and the final budget will go over the estimated budget. This

risk will have to be considered because the company will have to gauge the profit

they will have if the project is completed before the holyday season with respect to

the additional cost they will incur in adding more resources.

Bundling Requirement

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The bundling requirement can be done effectively by having extra cost allocated to

the project. The expected duration is just 14 days over the scheduled project end day,

so adding some more resources will enable the company to add the bundling which

will immensely help the company to gain competitive advantage during the

thanksgiving season. But the risk involved is that the project could go over the

estimated budget and the learning curve of the contracted employees should be taken

in to consideration.

Conclusion

Considering all the options and risks involved , the project could be completed before

the holiday season by allocating more recourses and cost. Thus the critical tasks

would be reduced and thereby the total time taken to complete the project. The

bundling could also be inculcated without much risks even though there will be a

slight increase in cost which could be covered by the sales in the holiday season .

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