This is a big project of a dream house of an 8000 square feet mansion. The budget approved by the home building finance department or real state agency for this mansion is $ 312,500. The total period for the completion of this project is about six months. The mansion’s construction was started from 1st June and needs to be end till the start of December. The mansion is designed and planned with a front entrance driveway, and to have four big rooms equipped with all the latest material and technology, a hall, a sports area and a big pool. This dream house mansion was planned with the usage of all the necessary construction material and activities. The necessary specifications include all the building materials and metals, a detail designed foundation and excavation needed tools, and with the installation of all the necessary plumbing, electrical and mechanical tools and aspects. Each level of the project is managed and supervised by a big supervising team.
Table of content
- Project Description
- Project Status Summary
- Project Status Details
- Project Current Status
- Earned Value Analysis
Project Status Summary
This dream house project of a mansion was presented to the real estate agency or home builders by the client. In our earlier assignments, we designed a complete project charter in the initiation phase and then in the planning phase, we completed our project plan. It included all the proper planning and management of the project’s schedule, budget, cost, quality, risk, communication and human resource aspects. The key elements for the success of the project were estimated to be the stakeholder needs, project objectives, deliverable due dates, project schedule, roles and responsibilities, project budget, communication plan and finally tracking and management tools. The two initial phases of the dream house project of this mansion are completed and now the project has entered in its execution phase. And the work on the dream house is underway. The project needs to be monitored and controlled in this execution phase. And to keep an eye on the progress of the project, we need to make a work performance report for determining whether the project is on track according to the planned schedule or not. Through this work report/ progress report/ status report, we can communicate the project status clearly with the stakeholder.
Project Status Details
The status reports are electronically or physically generated to have informative documentation about the project for analysis and evaluation of the project’s work performance. These progress reports help the management and stakeholders to take further actions, decisions about the project development. The monitor and control of the project work are concerned with the evaluation and assessment of the work performance related to the management plan, risks, progress etc. to make required changes and improvement in the current project and to achieve the milestone within time. These improvements and corrections are the part of controlling of the projects. (GUIDE, 2017).
In this project, we had scheduled the events of construction to achieve the milestone. These tasks of construction consist of the foundation, structure building, installations and finishing. We have now further added the inspection of the whole house and the milestone subtask at the end to complete the process. The larger tasks and subtasks were set according to the work breakdown structure.
The status report of the dream house project of this mansion can be executed based on events and task completion time. The foundation was scheduled to start from 1st June 2020 and all its steps such as the excavation, steel and concrete integration, wiring and plumbing then sealing and drying along with the final inspection was to be completed till 23rd July 2020. And the task was completed on time. Although some of the subtasks like finishing and drying took a little more time.
The following table shows the undergoing project details. And the details of all tasks and subtasks can be seen. So, the subtasks 1.1.1, 1.1.2 and 1.2.1 were on time. Subtasks like 1.1.3 and 1.1.4 were completed behind the schedule. And 1.1.5 was completed before time.
|Start Date||End Date||Start Date||End Date|
|1.1.2||Steel and Concrete||100||15/06/2020||30/06/2020||15/06/2020||30/06/2020|
|1.1.4||Drying and Sealing||100||06/07/2020||16/07/2020||08/07/2020||18/07/2020|
|1.2||Construction of the designed Structure||
|1.2.5||A big pool||0||10/09/2020||24/09/2020||remaining||remaining|
|1.4.1||necessary construction material and activities||0||26/10/2020||26/11/2020||remaining||remaining|
Project Current Status
On the current status of the project, its report can be displayed in the Gantt chart as follows. Based on scheduled tasks and their completion, this Gantt chart is made with the help of the “Match Ware Mind View 7” software. 32% of the total dream house project is completed yet and 68% is remaining which will have to be completed till the start of December 2020.
The following status report is also generated from the “Match Ware Mind View 7” software. This report shows the unstated, in progress and completed tasks of the dream house mansion project.
We are working with the 50/50 rule to calculate the earned value for project management. In 50/50 rule the 50% credits of the work are considered to be gain when the work started and you earn the rest of 50% credit on the work completion (Wikipedia, 2020). This means the before starting the process the earned value of the task is zero and after starting it the earned value become 50 % of the activity budget of that task and it exceeds to 100% on completion of the process. (How to Determine a Task’s Earned Value)
Earned Value Analysis
Earned Value Analysis Table: This earned value analysis table is filled according to the above progress report of the project.
|WBS Item||Budgeted Value||Planned Status||Planned Value (PV)||Actual Cost||Status||Earned Value||Cost||Schedule Variance|
|1.1.2 Steel and Concrete||$15,000||100%||$15,000||$16,000||100%||15000||($1,000)||$0|
|1.1.4 Drying and Sealing||$6,077||100%||$6,077||$7,000||100%||6077||($923)||$0|
|1.2 Construction of the designed Structure||$141,725||19%||$26,928||19%||26927.75||$26,928||$0|
|1.2.1 Front entrance||$20,000||100%||$20,000||$22,000||100%||20000||($2,000)||$0|
|1.2.2 Four rooms||$60,000||30%||$18,000||$0||40%||24000||$24,000||$6,000|
|1.2.4 Sports area||$30,000||0%||$0||$0||0%||0||$0||$0|
|1.2.5 A big pool||$20,000||0%||$0||$0||0%||0||$0||$0|
|1.3.1 Electrical equipment||$17,000||0%||$0||$0||0%||0||$0||$0|
|1.3.2 Plumbing instruments||$15,000||0%||$0||$0||0%||0||$0||$0|
|1.3.3 Mechanical aspects||$15,000||0%||$0||$0||0%||0||$0||$0|
|1.4.1 necessary construction material and activities||$60,700||0%||$0||$0||0%||0||$0||$0|
- The planned value (PV), earned value (EV), actual cost (AC), cost variance (CV) and schedule variance (SV) of the project are all calculated in the table and the formulas used for the calculations made above are all given below:
- PV = Percent Complete (planned) x Task Budget
- EV = Percent Complete (actual) x Task Budget
- AC = Actual Cost of the Task
- CV = EV – AC
- SV = EV – PV
These formulas have helped us find all the above values in the table to have a deeper look for the progress of the project.
- Planned Value (PV), Actual Cost (AC) and Earned Value (EV) totals for the project as a whole
The total of the planned value of the project as a whole until now is the total sum of $ 165,944 that is gained. And the total actual cost that can be calculated from the above table is $ 29299. The total earned value of the project is similar to the planned value that is $ 165,944.
- Total cost and schedule variances for the project as a whole
The total cost variance of the project as a whole is $48,744 till now and as the value of this cost, the variance is in the positive figure so we are going under our budget in the project till now. And there is no schedule variance as the project is going on an equal pace as planned and zero value shows that the project is on schedule. The cost variance could also become according to the planned value as the project is only 36 % completed and there is a lot more work to do for the completion of the project of this dream house mansion.
For the further detailed study for the comparison of cos and budget variation between the planned and ongoing working of the project, some other calculations are also an essential part of the status report. Therefore, we have made the following calculations below.
- Calculation of the Cost Performance Index (CPI) for the project as a whole
The term cost performance index (CPI) is similar to the cost variance (CV). The CPI can be calculated through the formula below:
CPI = EV/AC
For the project of dream house mansion, the Cost Performance Index (CPI) is calculated as
CPI= $ 165944/ $ 29200
Cost Performance Index (CPI)= 5.6
The value of CPI is greater than 1 which shows that our project is going under budget and our total cost till now is below the budget amount.
- Calculation of the Schedule Performance Index (SPI) for the project as a whole
Schedule variance (SV) is also similar to this schedule performance index (SPI). SPI of a project can be calculated through the following formula:
SPI = EV/PV
In our project the SPI= $ 165944/ $ 165944
So, Schedule Performance Index (SPI) = 1
The value 1 shows that the project of dream house mansion is exactly on the planned schedule and is not ahead or behind of it.
- Calculation of the Estimate at Completion (EAC) cost for the project for the following scenarios:
- The current cost performance trend continues for the remainder of the project.
In this case, the Estimate at Completion (EAC) can be calculated through the formula
EAC = BAC/CPI
Where BAC is the Budget at completion or project budget.
In our project, the budget is $ 312500. So, we can calculate EAC as:
EAC= $ 312500/ 5.6
Estimate at Completion (EAC) = $ 55803.5
- The remainder of the project is completed as per its original estimates.
The Estimate at Completion (EAC) can also be calculated if the project is going to complete according to original estimates through another formula
EAC = AC + ETC
Here ETC is the Estimate to Complete. We can find the value of ETC through the formula in below heading by the use of EAC value we found above. Putting the values in the formula we can get EAC as
Estimate at Completion (EAC)= $ 29200= $ 26603.5 = $ 55803.5
So, the value of Estimate at Completion (EAC) is the same in both scenarios using different formulas.
- Calculate the Estimate to Complete (ETC) cost of the project.
It can be calculated through the formula
ETC = EAC – AC
the Estimate to Complete (ETC)= $ 26603.5.
So, this is the budget which we can conclude based on our current value that will be required to complete the budget.
The dream house project of this mansion of 8000 sq. feet is very huge. We have initially designed and planned the whole structure of this mansion according to the desired of the client. And we had also scheduled the whole plan of the mansion in detail. In this assignment, we have made the progress report or status report of our project, so that the management and stakeholders can have a quick look and wye on the working progress of our project. All the detailed schedule plan and the ongoing project work is compared for this status report. The project is not yet completed and is underway towards its completion. Only 36% of the project is completed yet and there is a lot more work to do. Therefore, the status reports only compare the work that has been done until this time. All the factors or the report including the planned schedule, planned status, planned value, actual cost, earned value, cost variance and schedule variance has been find and listed in this report. Moreover, this status report also includes the important calculations about the dram house project including cost performance index (CPI) and schedule performance index (SPI) that provide further guidance to confirm the ongoing project variance with the planned one in terms of the cost and schedule. The budget comparison of the project included estimate at completion (EAC) and estimate to complete (ETC). All this data gathering and calculations have helped us to sum up the working progress of our project. This will help us know any area that needs more attention, work or improvement. The project report of the dream house mansion has shown all such results that we can now conclude that the project is going with a smooth pace as planned and designed in the initiation and planning phase. The budget is also compared and the result shows that the dream house project of the mansion has to go under budget and all the work done till now has the cost variance below the estimated budget planned for the project at this stage. So, the progress status report shows that we are going exactly on the planned schedule and the budget used is under the estimated budget and the cost has not exceeded from the planned amount.
GUIDE, P. (2017). A Guide to the PROJECT MANAGEMENT BODY OF KNOWLEDGE sixth edition. Project Management Institute.
How to Determine a Task’s Earned Value. (n.d.). Retrieved from Dummies: https://www.dummies.com/careers/project-management/how-to-determine-a-tasks-earned-value/
Wikipedia. (2020, July 28th). Earned value management. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Earned_value_management