INFORMATION SYTEMS 3
Part-3: Mr. and Mrs. Rodgers House (House construction)
BUDGET AND RISK MANAGEMENT
1.0.
Overall Project Budget
A technique called Earned Value Management (EVM) compares project performance to the project baseline (Xu et al., 2018). All project managers pursuing Project Management Professional (PMP) certification learn and memorize the earned value calculations. Their application in real life is patchy, though. According to Insight, EVM is among the "critical few" best areas of practice for keeping track of a project's progress from both a schedule and cost standpoint (Vasyunina, 2017). The binary way of thinking about projects is widespread:
· On time versus late
· Over budget versus under budget.
On the project cost, both performance evaluation elements have a significant impact (Chang et al., 2022). If our costs are lower yet we are running late, EVM provides excellent facts of the matter.
Determining Earned Value
Computing EV involves:
· The sum of the up-to-date project budget, known as the planned value (PV)
· Current costs are identical to Actual Cost (AC).
· The project budget is multiplied by the proportion of execution to determine earned value (EV).
Now that we have these numbers, we can start making some computations of:
Schedule Performance Index (SPI) = EV/PV
SPI contrasts actual and anticipated progress. Whenever the SPI value had been than 1.0, fewer tasks were completed than expected. SPI > 1.0 denotes the completion of more work than anticipated.
Determining the CPI:
CPI= AC÷EV
The CPI evaluates the worth of finished work in relation to its true cost. Its score of 1.0 denotes high costs than anticipated. A CPI of greater than one shows that costs remained lower than expected.
For the SPI and CPI, >1 is favorable while 1 is unfavorable.
Remember that;
Subtracting instead of dividing allows you to rapidly determine the difference between the project budget and the timeline. Schedule variance (SV) equals EV-PV, whereas cost variance = EV-AC. You can easily execute the subtraction operation in your head, and in this case, >0 is favorable to 0 in this situation.
Except in the case of SPI or CPI, deviation is reliant on the project's scope. Therefore, we cannot compare it across construction project or across time effectively, as the budget might have changed.
Calculating the Project EAC:
CPI = EAC ÷ Overall Budget
EAC represents the prediction aggregate cost.
In summary:
· Project is halfway to its completion,
· PV = $55,000
· AC= $45,000
The calculations are as follows:
EV=100,000 ×1/2
=$50,000
SV =EV-PV
Where EV=50,000 and PV=55,000
Therefore, SP= 50,000-55,000
=-$5000
In this case, the value of SP is -$5,000, which is unfavorable for our project because it is less than 0.
SPI = EV/PV
Thus;
SP1=50,000 ÷55,000
= $0.91
However, the SPI value is less than.
Basic phrases for greeting and assisting costumers
INFORMATION SYTEMS .docx
1. INFORMATION SYTEMS
3
Part-3: Mr. and Mrs. Rodgers House (House construction)
BUDGET AND RISK MANAGEMENT
1.0.
Overall Project Budget
A technique called Earned Value Management (EVM) compares
project performance to the project baseline (Xu et al., 2018).
All project managers pursuing Project Management Professional
(PMP) certification learn and memorize the earned value
calculations. Their application in real life is patchy, though.
According to Insight, EVM is among the "critical few" best
areas of practice for keeping track of a project's progress from
2. both a schedule and cost standpoint (Vasyunina, 2017). The
binary way of thinking about projects is widespread:
· On time versus late
· Over budget versus under budget.
On the project cost, both performance evaluation elements have
a significant impact (Chang et al., 2022). If our costs are lower
yet we are running late, EVM provides excellent facts of the
matter.
Determining Earned Value
Computing EV involves:
· The sum of the up-to-date project budget, known as the
planned value (PV)
· Current costs are identical to Actual Cost (AC).
· The project budget is multiplied by the proportion of
execution to determine earned value (EV).
Now that we have these numbers, we can start making some
computations of:
Schedule Performance Index (SPI) = EV/PV
SPI contrasts actual and anticipated progress. Whenever the SPI
value had been than 1.0, fewer tasks were completed than
expected. SPI > 1.0 denotes the completion of more work than
anticipated.
Determining the CPI:
CPI= AC÷EV
The CPI evaluates the worth of finished work in relation to its
true cost. Its score of 1.0 denotes high costs than anticipated. A
CPI of greater than one shows that costs remained lower than
expected.
For the SPI and CPI, >1 is favorable while 1 is unfavorable.
Remember that;
Subtracting instead of dividing allows you to rapidly determine
the difference between the project budget and the timeline.
Schedule variance (SV) equals EV-PV, whereas cost variance =
EV-AC. You can easily execute the subtraction operation in
your head, and in this case, >0 is favorable to 0 in this
situation.
3. Except in the case of SPI or CPI, deviation is reliant on the
project's scope. Therefore, we cannot compare it across
construction project or across time effectively, as the budget
might have changed.
Calculating the Project EAC:
CPI = EAC ÷ Overall Budget
EAC represents the prediction aggregate cost.
In summary:
· Project is halfway to its completion,
· PV = $55,000
· AC= $45,000
The calculations are as follows:
EV=100,000 ×1/2
=$50,000
SV =EV-PV
Where EV=50,000 and PV=55,000
Therefore, SP= 50,000-55,000
=-$5000
In this case, the value of SP is -$5,000, which is unfavorable for
our project because it is less than 0.
SPI = EV/PV
Thus;
SP1=50,000 ÷55,000
= $0.91
However, the SPI value is less than 1, making the SP
unfavorable for our project.
CV = EV-AC
= 50,000-45,000
= $5,000
The CV is greater than 0. Thus, it is favorable for our project.
CPI = EV/AC
= 50,000 ÷45,000
= 1.11
The CPI is favorable for our project as it is greater than 1
EAC = Total Budget of the project ÷ CPI
4. = 100,000/1.11
= $90,000
The project is regarded as being behind timeline as the SV is
unreliable and SPI is 1. Although the project is only 50%
complete, we have budgeted for 55% of the expenses that will
be incurred. The part 2 of the project will need to play catch-up.
The project is regarded as being under budget because the CV is
favorable and the CPI is greater than 1. We have completed 50%
of the project, but only 45% of our financial plan has been used
up to this point. The project's total cost (EAC), as contrasted to
our original budget of $100,000, will only be $90,000 if it
proceeds at this rate.
2.0.
Project Requirements
Typically, functional and non-functional prerequisites are
separated out in projects. A product's qualities, applicability,
capabilities, or operations are known to as functionality.
Functional requirements spell out how a system responds to
inputs like data or consumer behavior. It's common for
functional and non-functional criteria to coexist; one such is the
speed at which an app loaded in a browser. Non-functional
requirements often center on usability requirements, or behavior
patterns and characteristics that affect the user experience.
Given that the system may work without these requirements,
they are regarded as non-functional.
Solution
Prerequisites also refer to both functional and non-functional
requirements. Business and stakeholder prerequisites serve as
the foundation for solution requirements.
·
5. Business needs, or the organization's top priorities:
During the beginning of a project, business requirements are
frequently documented.
·
Stakeholder needs, a stakeholder's or group's
requirements: Selecting high-value criteria for the project plan
will require extensive collaboration with stakeholders on your
part as the project manager.
Other sorts of requirements include:
·
Transitional requirements: End-user training is among
them, and it helps an organization transition from one level to
another. Usually, these requirements are not documented until
the last item has been completed.
·
Project requirements: These are the procedures,
conditions, and actions that make up the project, such as
milestone dates. Examples of typical project requirements
include:
1. Service uptime requirements.
2. Each customer's ability to store data.
6. 3. Risk management procedures with a backup plan.
4. Fault tolerance, including the capacity for offline operation.
·
Quality requirements: They outline any prerequisites or
standards that project deliverables must meet.
3.0.
Cost Management Plan
1.
Calculate the project management budget: Cost
estimation's primary goal is to present a reasonable estimate of
the resources required to finish the project. Project managers
must consider a variety of factors before starting the cost
estimation process, including overhead, inflation, the payback
period, and variable and fixed costs..
2.
Cost Planning: A manager must carry out risk
management tasks, such as creating a cost baseline that
symbolizes the money the project leader has always had the
ability to govern and manage, when determining the overall
costs of a project.
3.
Cost Control: The primary focus of cost control is cost
7. variation from the cost baseline. It is a crucial step that
guarantees careful cost monitoring and management.
4.
Performance Measurement: As human resources and
payroll typically account for the largest share of a project's
budget, it is important to identify these during the planning
process in order to determine how the performance of each task
should be based on its cost.
5.
Formats for Reporting: Establishing reporting
procedures, their regularity, and reporting procedures
throughout stgees of a construction cost management plan is
crucial, especially when one considers that the document is a
part of construction management cycle and that disclosure can
be very helpful in identifying budgetary deviations.
4.0.
Risk Management Matrix
5.0.
Change Management Process
A set of initial conditions and a useful conclusion characterize
8. change processes (Chang et al., 2022). The workflow in between
is vibrant and emerges in stages. Here's an overview of the
important steps as in change management.
1. Project managers should prepare themselves culturally and
logistically before instigating the change.
2. Managers should create a practical plan for instigating the
change once the corporation is ready to do so.
3. After the plan is developed, all that exists is to take the
procedures described therein to enforce the required change.
4. Managers should think of new structures, controls, and
compensation programs as means to make change resilient.
5. Projec
t leaders must determine whether the change is
successful, unsuccessful, or has mixed results by analyzing and
evaluating its progress.
6. Keeping a RAID record is essential since every project has
all four of its components: risks, preconceptions or
assumptions, issues, and dependencies (Ali et al., 2021). Failure
to adequately address these factors during the planning stage
may result in issues later on, such as disruptions, production
delays, and even broken budgets.
9. References:
Ali, T., Akbar, W., & Wachani, J. U. (2021). Narcissistic
Leadership and Project Success in IT Industry: Moderating the
role of Risk Management Technology.
Journal of Entrepreneurship, Management, and
Innovation,
3(2), 385-408.
Chang, C. M., Vavrova, M., & Mahnaz, S. L. (2022).
Integrating Vulnerable Road User Safety Criteria into
Transportation Asset Management to Prioritize Budget
Allocation at the Network Level.
Sustainability,
14(14), 8317.
Shayan, S., Pyung Kim, K., & Tam, V. W. (2022). Critical
success factor analysis for effective risk management at the
execution stage of a construction project.
International Journal of Construction Management,
22(3), 379-386 (Chang et al., 2022)
Vasyunina, M. L. (2017). On budget risk management.
10. Finance and credit,
23(40), 760.
Xu, Y., Zhang, J., & Pinedo, M. (2018). Budget allocations in
operational risk management.
Probability in the Engineering and Informational
Sciences,
32(3), 434-459.
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Surname5
Residential House Construction Project
Finalized Project Scope
This project is intended to construct a new home for Mr. and
Mrs. Rodgers. This article offers data on the prospective
resource allocation for the project, paying keen attention to the
stakeholder and time assigned to the relevant milestones and
tasks. From the information, a work schedule for the project is
also given, The stakeholder engagement and communication
plan is also given, offering information on the stakeholders
involved in each phase of construction, the extent of their
activities, and the timeframe within which their engagement is
27. relevant. Finally, the work breakdown structure for the
residential house project, highlighting the scope, milestones,
and tasks involved in every phase of the project.
Stakeholder Engagement-Communication Plan
PHASE
STAKEHOLDER
ENGAGEMENT
TIMEFRAME
ACTIVITIES
PRE-CONSTRUCTION
Client, design team, specialists in relevant sectors, project
manager, relevant authorities.
28. Client, project manager, locals.
Formal discussions conducted by the entity authorized to
deliver the decisions that are consistent with statutory
procedure during the environmental impact assessment and
decision-making process. Acquiring a building permit as well as
an occupancy permit. Getting permission to utilize the
environment.
Informal meetings and consultations with the locals.
Reports on environmental assessments by end of January, 2023.
Necessary permits by December, 2022.
29. Publication of information on measures taken by the
organization as part of the environmental impact assessment
processes in the usual manner. Within the environmental
protocol, there is a 21-day time for public consultations.
Disclosure of information about project-related choices.
Details about investing strategies. Information about processes
for getting decisions.
CONSTRUCTION
Contractor and sub-contractors, client, construction workers,
project manager.
Unofficial engagements within the framework of the
Stakeholder Involvement Plan.
All throughout the construction process.
Reminding them about contact details and the complaint
reporting process. Establishment of regulations allowing
construction workers to file comments. Details for the
municipality and its residents.
OPERATION
Client, supervisors, project manager.
Casual discussions within the framework of the Stakeholder
Involvement Plan.
Post-completion and assessment, and all through the operation
process.
30. Results are sent to responsible authorities in accordance with
existing legislation, and relevant data is published on the
construction company website.
Resource Allocation
TASK
ASSIGNED
TO
PROGRESS
START
END
PRE-CONSTRUCTION
Site preparation
Client, Project manager
100%
39. Mr. and Mrs. Rodgers and their family will develop a new
primary dwelling through this construction project. It is
expected to be finished in April, allowing the Rodgers family to
move in within the first two weeks of May. Mr. Rodgers will
relocate from Asia to North America to assume responsibility
for his company's North American affairs in 2023. Therefore,
the residence must be finished by April 30, 2023, so that the
Rodgers can establish residency in the neighborhood with
sufficient advance time for their children to register in the
public education system along with their peers for the 2023
school year.
Description
This project is intended to construct a new home for Mr. and
Mrs. Rodgers. The new home will be a high - end residential
structure constructed on a three-acre lot - lot #38, situated at
101-819, Integer Road, Corona New Mexico, 02819, USA. The
construction is scheduled to begin on Monday, November 6,
2022, and conclude on Sunday, April 30, 2023. This home is
being created using the most up-to-date construction materials
and specifications, as well as cutting-edge energy-saving
technologies. Building will be supervised and managed by Top
Home