Project Cost and Schedule Control Project

Executive Summary

The theme park project is 40% complete as of 10/01/2008. The current completion date is 1/06/2009 and the schedule performance indicator is only.50, but this is deceiving as the critical tasks are on schedule and we have simply used up some of the available slack in non-critical tasks. While we are a little past 50% through the time frame the project is currently running behind by about three weeks. Costs are running slightly over budget, but are not as serious as the current schedule issues. The project team has identified solutions to bring the project back on schedule and allow for the theme project to open on time.

The current estimate at completion is $4.944M which exceeds the budget of $4.449 by almost $500K. We anticipate an additional $42K of overtime costs to make up the three week schedule delay and allow the park to open as scheduled on 12/19/08. This will be accomplished by having key resources associated with the critical tasks work 6 days per week, thus allowing them to complete their tasks sooner.

The additional costs for overtime will be small in comparison with the value of opening before Christmas. We are well aware of the fact that opening at Christmas is critical to the success of this project and are committed to meeting that deadline with the resources provided. The current costs are $1.447M and we feel with cost control we may be able to bring the costs back in line as well. Currently we are running a .90 cost performance index meaning for every $1 budgeted we have gotten 90 cents of work. With some tighter controls we can bring the costs closer in line, but using earned value we see the $500K additional as a worst case scenario.

Schedule 1

Performance Analysis

As of 10/01/2008 the revised estimated date of completion is 1/6/2009 per Microsoft Project. This is 12 days later than originally scheduled. Upon completing earned value calculation the Schedule Performance Indicator (SPI) is 0.51. Because most of the activities that are running behind are not critical there is certainly room to get the project back on track. The SPI requires further inspection to determine the true effect of the schedule. If using a straight estimate using the SPI, it would be expected that the project is about 50 percent complete and would require as much time to complete as had been taken already. This would put the estimate into March.

Analyzing the Cost Performance Index (CPI) shows a 0.90 which shows the project is over budget. The CPI is not as bad as the SPI, but is still concerning that we are not trending to come in under budget. The current