Executive Summary
The project is expected to commence on April 14 2008 while the desired date of completion is
expected to be on December 17, 3008.The total budgeted costs for the project is $4,449,520
while the initial baseline costs amounted to 4,439,300. The major activities include site layout
and grading that is expected to commence on August 14, 2008 and end on 15 th October while
masonry work is scheduled to take 60 days commencing on July 14, 2008 and it’s scheduled to
end on 3 rd October 2008. Plumbing and electrical works are expected to commence on September
19 and July 28 respectively. Plumbing works is expected to last for 85 days while electrical
works would take 95 days. The installation and training of the Ferris wheel is expected to lasts
for 137 days commencing on 14 April, 2008 and ending on October 21 2008.
The reschedule of the project to commence the incomplete work after Oct1 2008, would mean
that most of the other tasks would also be deleyed (Lock, 2007).
Introduction
The Theme Park Project is a project that is scheduled to commence operations on April 14, 2008
and its desired completion date is December 17 2008. The baseline costs are estimated to be
$4,449,920.
CP3 2
The Earned value is made up of the Budgeted Cost of Work Schedule, Budgeted Cost of Work
Performed and the actual cost of work performed (Ireland, 2006).
The Budgeted Cost of Scheduled Work (BCSW) = Planned Value (PV) ( Cleland & Gareis,
2006).
Actual Cost of Project work Performed (ACWP) = Actual cost (AC)
Budgeted Cost of Project Work Performed = Earned Value.
The Budgeted Cost of Scheduled Work shows the project financial plans and the period when the
costs would be incurred.
The Theme Park project has scheduled the activities to be completed before the December 17
- However, as per the new date for all the incomplete projects to restart in October 2008, the
new completion date would be December 11, 2009 at 5pm. This completion date would be
feasible only if the projects that had already started would continue from where the activities
stalled. The total days taken would amount to 435 days.
The actual cost of work planned (ACWP) amounted to $2,666,960 while the budgeted costs of
work scheduled amounted to $4,439,300 and the Budgeted cost of work planned amounted to
$4,429,300. The schedule variance amounted to $10,000.
The baseline costs for the project at 40% amounted to 696,300 while the actual costs for the
same period amounted to 2,666,960 (Phillips, 2003).
Data
CP3 3
Year Quarter Budget Cost Baseline Cost Cost Actual Cost
2008 Q2 0 28400 221113.66 28400
Q3 0 286200 873430.31 286200
Q4 0 259700 1211368.58 259700
2008 Total 0 574300 2305912.55 574300
2009 Q1 0 62400 272780.93 62400
Q2 0 5200 15866.66 5200
Q3 0 0 0 0
Q4 0 54400 72400.01 54400
2009 Total 0 122000 361047.6 122000
Grand Total 0 696300 2666960.15 696300
Data
Year Quarter Earned Value Planned Value AC
2008 Q2 171800 171800 171800
Q3 1740880 1740880 1740880
Q4 0 0 0
2008
Total
1912680 1912680 1912680
2009 Q1 0 0 0
Q2 0 0 0
Q3 0 0 0
Q4 0 0 0
2009
Total
0 0 0
Grand
Total
1912680 1912680 1912680
The earned value amounted to 1,912,680.
2008
Schedule Variance (SV) Earned Value (EV) – Planned Value (PV) 0
Cost Variance (CV) Earned Value (EV) – Actual cost (AC) 0
Schedule Performance Index (SPI) Earned Value (EV)/Planned Value 0
The Gant Chart for the period ending December 12, 2009
CP3 4
The planned value for the project was $4,439,300
CP3 5
CP3 6
To return the project back to its track, all the project activities would be allowed to continue as
per the initial schedule. The tasks would commence on April 14 and continue till the scheduled
completion date on 17 December 2008.
The actual costs incurred as on October 1 st 2008 were 2,666,960 while the total baseline costs for
the whole project amounted to $4,429,300. The budgeted costs were $4,449,920 for the whole
project. The balance of $20,620 represented a favorable variance ( Cleland & Gareis, 2006).
To ensure completion of the project as scheduled the difference of the total costs of resources
between the baseline costs and the actual costs have to be provided.
Variance Actual Baseline
1762340 2666960 4429300
Cost to
completion
1762340
4429300 4429300
To conclude, the project would be on a better position if it continued with the original plan to
end the project in December 17 2009. Stopping the project and rescheduling the incomplete tasks
to commence on October 1 2008 was a bad move as it would result in a lot of crisis. However,
costs are also affected by other economic trend that is existing within a particular region or
economy. Other factors that may affect the project are the labor costs and pilferage of materials.
CP3 7
To reduce the costs totally, then additional costs spent on slabs on Grade and flooring together
with the additional amounts spent on footings foundation can be recovered by encouraging more
production over lunch hours and other overtimes payable in the evening.
CP3 8
References
Ireland, L.R. (2006) Project Management. McGraw-Hill Professional.
Lock, D. (2007) Project Management (9th ed.) Gower Publishing, Ltd.
Phillips, J. (2003). PMP Project Management Professional Study Guide. McGraw-Hill
Professional.
Cleland , D.I. & Gareis, R. (2006). Global Project Management Handbook. McGraw-Hill
Professional.
Harrison, F.L. & Lock, D. (2004). Advanced project management: a structured approach.
Gower Publishing, Ltd.
