Hrm/531 Week 4
This assignment is based on an Earned Value analysis performed by a cost account manager, who has received a variance report (given below) from a performance measurement system. I have calculated the appropriate variances and included corrective measures for each of them.
REPORT
Variances are calculated as follows:
CV (cost variance) = BCWP – ACWP
SV (schedule variance) = BCWP - BCWS
TASK A B C D E
ACWP $22,550 $32,000 $16,000 $10,000 $23,000
BCWP $25,000 $30,000 $15,000 $17,000 $24,000
Cost Variance $2,450 -$2,000 -$1,000 $7000 $1000
BCWS $30,000 $40,000 $16,000 $15,000 $40,000
BCWP $25,000 $30,000 $15,000 $17,000 $24,000
Schedule Variance -$5,000 -$10,000 -$1,000 $2,000 -$16,000 A positive cost variance indicates that …show more content…
This means that we are very close to following the budget. One good way of improving costs for would be cutting down the peripheral tools required in the process and sharing them. It does not hit performance very hard.
Schedule Variance of C – This time, we have a small –ve SV of $1000. We can improve this situation by better explanation of the task to the worker so that he/she spends more time doing the work rather than understanding it.
Cost Variance of D - We have a huge +ve CV of $7000. No action plan is necessary.
Schedule Variance of D – We have +ve SV of $2000. Hence we are on schedule and no plan is necessary.
Cost Variance of E - We have a +ve CV of $1000. Hence, once again, we are moving with the budget and no plan is necessary.
Schedule Variance of E – We have a huge –ve SV of $16000 but a +ve CV. Although we are in budget, we are not getting work done well. The best way is to either improve the scheduling because no manager can create a poor schedule or increased motivation for the workers to get more work done. We can also improve the scenario by efficient scheduling of existing tools required to complete the task among the workers so that tools do not remain idle for a long period of
REPORT
Variances are calculated as follows:
CV (cost variance) = BCWP – ACWP
SV (schedule variance) = BCWP - BCWS
TASK A B C D E
ACWP $22,550 $32,000 $16,000 $10,000 $23,000
BCWP $25,000 $30,000 $15,000 $17,000 $24,000
Cost Variance $2,450 -$2,000 -$1,000 $7000 $1000
BCWS $30,000 $40,000 $16,000 $15,000 $40,000
BCWP $25,000 $30,000 $15,000 $17,000 $24,000
Schedule Variance -$5,000 -$10,000 -$1,000 $2,000 -$16,000 A positive cost variance indicates that …show more content…
This means that we are very close to following the budget. One good way of improving costs for would be cutting down the peripheral tools required in the process and sharing them. It does not hit performance very hard.
Schedule Variance of C – This time, we have a small –ve SV of $1000. We can improve this situation by better explanation of the task to the worker so that he/she spends more time doing the work rather than understanding it.
Cost Variance of D - We have a huge +ve CV of $7000. No action plan is necessary.
Schedule Variance of D – We have +ve SV of $2000. Hence we are on schedule and no plan is necessary.
Cost Variance of E - We have a +ve CV of $1000. Hence, once again, we are moving with the budget and no plan is necessary.
Schedule Variance of E – We have a huge –ve SV of $16000 but a +ve CV. Although we are in budget, we are not getting work done well. The best way is to either improve the scheduling because no manager can create a poor schedule or increased motivation for the workers to get more work done. We can also improve the scenario by efficient scheduling of existing tools required to complete the task among the workers so that tools do not remain idle for a long period of