Estimate at Completion
Revised Estimate at Completion
Summary and Conclusions Section
This document comprises of several sections that are financial analysis of a new Indoor theme park project. The financial analysis of any project is very vital for any project since it gives an opportunity to better understand where on the project the project team is and what is needed to be done to improve the project. For example if based on the analysis it turns out to be that the project is behind the schedule and over the budget as a project manager one needs to inform the stakeholders about it and ask for taking corrective actions. If the project is behind the schedule then some resources may be added to the project so that the project team is capable of catching up with the progress. Or if there is a situation where the project is over budget the stakeholders need to be aware of the reasons and try to mitigate the issue or at least be ready for getting additional funds from different donors and sponsors. Each section of the executive summery is important and gives a detailed information about how a certain part of the project is doing or how the project looks in terms of Gantt Chart which incorporates the provided project data, established baseline, and proper review date representing the anticipated 50% completion date for the project. When we look at the project Gantt Chart we can see that the baseline finish date is 12/19/2008 and we do not have actual finish date. The baseline start date shows 4/14/2008. The duration of the project is 180 days as well as is the baseline. Performance Analysis section discusses Earned Value data to analyze the project cost and schedule performance. By Looking at the project plan MPP file the Earned Value (BCWP) is $1,086,640.61 the actual cost is $1,230,683.00 and the schedule variance is negative ($565,266.07) and the cost variance $144,042.39 and the planned value is $ 1,651,866.66. Estimate at Completion includes a forward-looking estimate of the project completion date and the final project costs. Estimate at Completions is the expected total cost of a schedule activity, a work breakdown structure component, or the project when the defined scope of work will be completed. EAC is equal to the actual cost of work performed (ACWP) plus the estimate to complete (ETC) for all of the remaining work. EAC = ACWP plus ETC
The EAC may be calculated based on performance to date or estimated by the project team based on other factors, in which case it is often referred to as the latest revised estimate. Based on the MPP files submitted our Estimate at Completion is $ 4,641,666.27. Control Plan provides a corrective action plan to bring the project back in line with the project baseline. The solution that suggested in here is to decrease the days of the project from 108 remaining days to 105.62 days. The work schedule and baselined will be changed as well. The cost will be affected as well. Thus there will be one overlocated resource . The Revised Estimate at Completion includes the corrective actions from the control plan along with the resulting cost impact and schedule impact. Based on the MPP attached file we can see that after the corrective actions the cost will be affected and the schedule will be remained the same because our task is to have the project completion date at the same day. Thus just by doing some corrections we can maintain the same schedule but the cost may be changed and impacted by the corrective actions we take. Schedule 2 has revised MSP Gantt chart schedule that shows the impact of the corrective actions. The corrective actions are necessary to have the completion date of the project to be on 12/19/2008. It is usually difficult to finish any project on schedule. Based on recent statistics only 30% of...
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