Bulleted Hip-Pocket or Elevator Briefing
Sir, we have completed the project plan, which will assist the project to be built following the specifications set up by the customers. All the project specifications such as costs, workmanship, schedule as well as final delivery are tailored to the customer’s requirements. Moreover, we have taken the quality and costs of the project very serious to ensure that the project is completed on budget, quality specifications, and time. The approved BAC (Budget at Completion) of the project is $143,530. We try to make our BAC reasonable enough and compare with the BAC of similar projects to ensure that the customer disburses the fund for the project. The EAC (Estimate at Completion) includes direct labor and materials. Our recently estimated at completion has reached $156,768.32. The major reason for an increase in the EAC is the constant increase in materials making the project stakeholders to readjust the EAC. Moreover, our current SV (Schedule Variance) is ($4,320) making the project $4,000 behind schedule. We are able to arrive at the SV by deducting from the Budgeted Cost of the Work Scheduled from Budgeted Cost of the Work Performed. The CV (cost variance) is ($5,760) making the project $6,000 over budget. Moreover, we are able arriving at CV by deducting Actual Cost of the Work Performed from Budgeted Cost of the Work Performed.
Our current SPI (Schedule Performance Index) is 0.935 revealing that from every dollar spent on schedule effort on the project, we realize $0.94 worth of progress from the project. Compared to the international standard, we are able to deliver excellent results from the SPI. Additionally, the current CPI (Cost Performance Index) of the project is 0.915 showing that from every dollar spent on the project, we are able to realize $0.92 of planned results. Our CPI is excellent because we will monitor all the quality of materials that will be used for the project. Moreover, we will use competent and qualified staff to complete the project to ensure that project meets the international standard. (Kaplan Technical Corporation, 2015).
The VAC (Variance at Completion) is (13,238.12), and is due to an increase in the cost of the budget at completion. Typically, the project is not in trouble at this time, the PM Eval is 109% and the PM’s VAC is 9% over BAC. Our ETC (Estimate to Complete) is also ($88,558.32). We are able to enhance the quality of the project to ensure that all the construction processes have been followed. Moreover, we are able to follow the construction process and all the improvement have been well documented similar to a standard project.
We have enhanced the customer satisfactions using a superior workmanship, cost, and schedule to enhance the final delivery of the project. Moreover, we have implemented cost controls to update the project budget in order to manage the cost baseline. Our cost control processes are acted upon to change requests and acted upon in a timely manner. Although, we have implemented different strategies to ensure that the project expenditure does not exceed the projected budget, nevertheless, a constant increase in the price of cost materials have made the BAC to increase. We have also implemented costs control tools for the earn value management. We have taken the work performance management information to be utmost important. The earn value management is the technique we use in enhancing the cost controls. We use the earn value management to develop a project scope, schedule, and costs. We also use the performance review to compare cost performances, scheduling activities and work package.
Kaplan Technical Corporation (2015). Cost baseline Cumulative S-Curve (Kaplan Technical Corporation Distance Learning, Module 6 Cost Budgeting and Control, course PMGT605).
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