Group#9

Anirudh Kandrika (u113147)

Binoy Lobo(u113148)
Mamsha Rath(u113149)
Mayank Srivastava(u113150)
Md. Ali Tabish(u113151)
Meenakshi Behera(u113152)
Melisha Ghosh(u113153)
In 2003, Franklin won an 18- month
labor intensive product development
contract by Spokane industries
It was a cost reimbursable contract
Cost target of $2.66 million and fixed
fee of 6.75% on the target
Contract required usage of Earned
Value cost Schedule report which was
new to Franklin
First contract by Spokane Industries
that was a cost reimbursable contract
Franklin
Electronics
Management Group
Project Manager Assigned by Spokane
Local cost Accounting Department was set up
2 line manager were appointed
Work Breakdown Structure
45 work packages
1
st
four moths : 4 work packages to be implemented

Fewer Interchange meeting
Implementation of earned value measurement
Spokanes faith in EVM to get necessary and meaningful information

The vice presidents comments are reflective of the
project status derived from data computed using
the EVMS
The trend identified through this method is
reflective of actual cost overruns and schedule
slippage
The statements are not totally accurate
The president failed to analyse the variance the variance
Cost Variance CV = BCWP(EV) -
ACWP(AC)
Schedule Variance (SV) =
BCWP(EV) - BCWS(PV)
The Cost Variance does not increased by 78%

The Schedule Variance does not increased by 45%

To complete the analysis of the status report, it is must to include
Budget at completion (BAC)
Estimate at completion (EAC)
the Critical Path.
Budget at Completion
The budget at completion is the sum of all
BCWS allotted to the project

here it is 121k for end of month 2 and
299k for end of month 3
Estimate at Completion
It is the sum of all direct and indirect costs
to date plus the estimate of all authorized
work remaining

EAC for month-end-2= 139.82 and EAC for
month-end-3= 328.429k
Franklin Electronics needs a better understanding of EVMS. Earned value
measurement reports need to include other project related parameters such as
Project Plan
Evaluate and manage the
project
Updated throughout the
life-cycle of the project
Recourses Needed
Capital and Human
Resources

Percentage of Work
Completed
Report about the
completed work and
current status
The PERT network
Diagram
Earned Value
Measurement
Schedule Variance (SV)
Measurement of the
schedule performance
for a project. Gives an
idea whether project is
ahead or behind the
baseline schedule.
Cost Variance (CV)
Measurement of the
budget performance
for a project. Tells the
management whether
project is above or
below budget.
Schedule Performance
Index (SPI)
Measures the progress
achieved against that
which was planned.
Cost Performance
Index (CPI)
Measures the value of
the work completed
compared to the actual
cost of the work
completed.
Reports printed out from EVM system
Performance Reports
Indicate physical
progress till date
Status Reports
Analyze project progress
till that point. Calculate
SV & CV
Projection Reports
Calculate SPI, CPI as well
as any other forward-
looking projection
Exception Reports
Identify exceptions, problems or
situations that exceed the threshold
limits on such items as variances, cash
flow, resources assigned etc
Franklin Electronics was implementing EVMS for the first time
The status report prepared by them was extremely simple and should have included more details
regarding the project like percentage of work completed. Elements of critical path could have been
employed to build a project schedule model.
EVMS is just a tool to analyze the progress of a project
EVMS only covers cost and schedules and, therefore, no quality control is factored into EVMS
EVMS does not tell the whole story on evaluating a project and might not accurately represent
what is necessary for a project to achieve specific functionality
Spokane Industries decision to rely only on the EVMS reports was a big NO!!
The EVMS reports could have been used by both Spokane Industries & Franklin Electronics to
discuss matters which are hampering the project on the table & come out with mitigation plans
Advantages of EVM
over meetings
Saves time
Gives a more
detailed
information about
the whole project
Would give
information via the
earned value status
reports
For Franklin
Electronics
EVM is a new
concept
Cost Accounting
group not happy to
learn EVM
EVM would mean
lack of
communication
For Spokane
Industries
Assigned a
consultant to
Franklin
Had tremendous
faith in the ability
of EVM
Did not mention
EVM would be a
part of all contracts
To continue the contract and discuss the current situation in
details
Give a complete status report like performance reports, Status
reports
Rearrange the schedule
Continue with interchange meetings for first few months till
Franklin is familiar with EVM.
Thank You !!!