Earned value management means that the worth of a particular form of work is equivalent to the invested total amount accounted to complete it. To evaluate one's timetable and total cost fully, one needs to plan the value of the project, earned value, and the actual cost one will need for a Tree Trimming Project (Anbari, 2003).
Question 1
According to statistics, the total amount of trees Will’s workers have to prune by the time procuring of trees begin Will’s budget is below cost (Fleming and koppelman, 2000). Planned value implies that a project has to be finished by a specific date because the sum amount estimated is equivalent to the task undertaken (Anbari, 2003). Also, Will’s schedule is also going to lurk behind considering dates in which procurement of trees begin meaning Will has to add extra funds for his workers to complete at an earlier time. In Will’s case, due to small funds, the real cost of work performed does not apply.
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Question 1b
Will is using earned value since he has a regular budget of $30,000 and an agreement to sheer 24000 trees (Fleming and Koppelman, 2000). Earned value here means that completion of trimming trees happened exactly in twenty days. After five days, Will has an estimated 6000 trees down saying that each day Will’s workers used $1.25 for every tree trimmed and 1200 trees were cut.
Question 2
Will is supposed to set up a scheduling difference by calculating the total of earned value and the actual cost (Pajares and Paredes, 2011).
Earned Value- Actual Cost of Work Intended = Schedule variance
Conclusion
Schedule variance being the disparity between amounts accounting for total work done and work expected shows if one has a difference and also by how much one's work is lurking or ahead according to schedule (Pajares and Paredes, 2011). Therefore, using a schedule variance will enable will budget accordingly for his tree trimming business.
References
Anbari, F. T. (2003). Earned value project management method and extensions. Project management journal , 34 (4), 12-23.
Fleming, Q. W., & Koppelman, J. M. (2000, January). Earned value project management. Newtown Square, PA: Project Management Institute
Pajares, J., & Lopez-Paredes, A. (2011). An extension of the EVM analysis for project monitoring: The Cost Control Index and the Schedule
Control Index. International Journal of Project Management , 29 (5), 615-621.
