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Tree Trimming Project

In: Business and Management

Submitted By Marinmf
Words 592
Pages 3
Earned Value
Earned value is an approach that assists with monitoring a project plan, actual work, and work completed value. Earned value demonstrates if a project is on track by showing how much time and what of the budget should have been spent.
Is Wil over, on, or below schedule? Wil is on schedule because after 5 days it has been observed that the total number of trees sheared are 6000 and if we calculate the total amount of work done, it can be calculated by the number of trees sheared divided by the total number of trees and if we multiply by hundred we will get the actual percentage, which amounts to 25% (Number of trees sheared = 6000, total number of trees = 24000). Therefore, the total amount that must be paid for this 25% of the work done is 7500, which is calculated by determining the 25% of the total amount payable, which is $ 30,000. In this case, he is benefiting in cost with a chance to profit an average of $7,500.00.
Is Wil using earned value? Yes, in this case Wil is using earned value because according to the data collected it can be observed that Wil has done 25% of the work in 5 days and should receive 25% of the total payment, which is $ 7500 (Marshall, 2007).
How can Wil set up a scheduling variance? Schedule variance helps indicate how much behind or ahead a project schedule is running. This tactics indicates that the project is on schedule if the results are positive, and running behind when the results are negative. The setup of the scheduling variance should be the budgeted cost of work performed minus the budgeted cost of work scheduled. The budgeted cost of work performed is 7500, therefore the scheduled budget can be calculated and the Schedule Variance can be set up. The cost variance is the difference of actual cost of work performed and budgeted cost of work performed. The budgeted cost of work

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