MIZAN TEPI UNIVERSTIY

TEPI CAMPUS
SCHOOL OF COMPUTING AND INFORMATICS
DEPARTEMENT OF INFORMATION SYSTEMS
ASYSMENT OF PROJECT MANGEMENT
Preared by:.

name id
Adise adane 0124

Submitted date 7/03/2016e.c

Submitted to Mr samson demake

1. Explain the concept of resource leveling in project management. How
can project managers optimize resource allocation to ensure timely
project completion while considering resource constraints?
Resource leveling is a project management technique used to optimize the allocation
of resources in order to ensure timely project completion while considering resource
constraints.
The goal of resource leveling is to balance the workload of resources over the course
of a project, preventing any one resource from being overburdened while others are
underutilized.

Project managers can optimize resource allocation by following these steps:

1.Identify resource constraints: Project managers should first identify the availability
and constraints of their resources, including human resources, equipment, and
materials. This will help them understand the limitations and capacity of their
resources.

2.Develop a resource plan: Once the constraints are identified, project managers can
develop a resource plan that outlines the allocation of resources over the course of the
project. This plan should consider the availability of resources and the timing of their
need.

3.Use project management tools: Project management tools such as Gantt charts and
resource management software can help project managers visualize the allocation of
resources and identify any potential bottlenecks or over allocations.

4.Adjust project schedule: Based on the resource plan and constraints, project
managers may need to adjust the project schedule to ensure that resources are
allocated in a balanced and efficient manner. This may involve shifting tasks or
adjusting timelines to accommodate resource availability.
5. Monitor and adjust:
project managers should continuously monitor the allocation of resources and make
adjustments as needed to ensure that resources are being utilized effectively and that
the project remains on track.

2. Compare and contrast EVM with traditional cost control methods.

Explain how EVM provides more comprehensive insights into project

performance.
Traditional cost control methods typically involve tracking and monitoring the actual
costs incurred against the budgeted costs for a project.
This is often done through simple budget tracking and variance analysis, which
focuses on comparing planned costs with actual costs to identify any deviations.
While this approach provides some insight into cost performance, it does not provide
a comprehensive view of overall project performance or the relationship between cost,
schedule, and scope.
Earned Value Management (EVM), on the other hand, is a more comprehensive and
integrated approach to project performance management.
EVM incorporates not only cost control but also schedule and scope management,
providing a holistic view of project performance. EVM integrates cost, schedule, and
scope data to provide insights into project health and performance, allowing project
managers to make informed decisions and take proactive measures to address any
issues.

EVM uses key metrics such as Planned Value (PV), Earned Value (EV), and Actual
Cost (AC) to assess project performance. PV represents the budgeted cost of work
scheduled, EV represents the budgeted cost of work performed, and AC represents the
actual cost of work performed. By comparing these metrics, project managers can
calculate performance indicators such as Cost Performance Index (CPI) and Schedule
Performance Index (SPI) to assess cost and schedule efficiency.

EVM also provides forecasting capabilities, allowing project managers to predict

future performance based on current trends and make adjustments to the project plan
as needed. This proactive approach to performance management sets EVM apart from
traditional cost control methods, which often focus solely on historical data and do not
provide insights into future performance.

3. How do project managers handle cost overruns and unexpected

expenses during the project execution phase? What strategies can be
employed to mitigate the impact of cost deviations?
Project managers can handle cost overruns and unexpected expenses during the
project execution phase by implementing the following strategies;
1. Identify the root cause: Project managers should first identify the reasons for cost
overruns and unexpected expenses. This could include poor estimation, scope changes,
resource constraints, or external factors. Understanding the cause will help in
developing appropriate strategies to address the issue.

2. Revisit the budget: Project managers can revisit the budget and reallocate funds
from other areas, if possible, to cover the overruns. They may also need to revise the
budget and seek approval for additional funds if necessary.

4. Prioritize and re-evaluate the scope: It may be necessary to re-evaluate the project
scope and prioritize deliverable to stay within budget.
This may involve cutting down on non-essential tasks or features to reduce costs.
5. Implement cost-saving measures: Implementing cost-saving measures such as
optimizing resource utilization, reducing waste, or finding more cost-effective
alternatives can help mitigate the impact of cost overruns.

6. Communicate with stakeholders: Open and transparent communication with

stakeholders about the cost overruns and unexpected expenses is crucial. It is
important to keep stakeholders informed about the situation and any actions being
taken to address it.

7. Risk management: Project managers should revisit the risk management plan and
identify any new risks that have contributed to the cost deviations. Mitigation
strategies can then be implemented to address these risks.
8. Continuous monitoring and control: Project managers should continuously monitor
project costs and implement strict control measures to prevent further cost overruns.
This may involve regular budget reviews, tracking expenses, and making adjustments
as needed.

9. Lessons learned: After addressing the cost overruns, project managers should
conduct a thorough analysis to understand what led to the deviations and document
lessons learned for future projects.

4.What are some common challenges faced by project managers, and how
can they be overcome? Provide strategies for addressing issues such as
scope creep, resource constraints, and team conflicts.
Some common challenges faced by project managers include scope creep, resource
constraints, and team conflicts.
Here are strategies for addressing each of these issues:

1.Scope Creep:
- Clearly define the project scope and deliverable at the beginning of the project.
- Implement a formal change control process to manage any changes to the project
scope.
- Regularly communicate with stakeholders to ensure everyone is aligned on the
project scope and objectives.
- Prioritize and re-evaluate the scope if necessary to stay within budget and timeline.

2.Resource Constraints:
- Conduct a thorough resource assessment and identify any potential constraints early
in the project.
- Explore options for reallocating resources or bringing in additional resources if
necessary.
- Optimize resource utilization by implementing efficient scheduling and task
prioritization.
- Consider outsourcing certain tasks or activities to alleviate resource constraints.

3.Team Conflicts:
- Foster open and transparent communication within the project team to address any
conflicts or misunderstandings early on.
- Encourage collaboration and teamwork through team-building activities and regular
team meetings.
- Clearly define roles and responsibilities to minimize confusion and conflicts within
the team.
- Implement a conflict resolution process to address any issues that arise in a timely
and constructive manner.
project managers can improve project outcomes and minimize the impact of potential
risks on project success.

5.Question on EVM Metrics Calculation - Project C: For Project C, the

following data is available:
i. Planned Value (PV): $75,000
ii. Earned Value (EV): $70,000
iii. Actual Cost (AC): $80,000
Calculate the following EVM metrics:
a) Schedule Variance (SV)
b) b) Cost Variance (CV)
c) c) Schedule Performance Index (SPI)
d) d) Cost Performance Index (CPI)
Explain what each calculated metric represents in Project C and interpret
the results.
Answer:.
a) Schedule Variance (SV) = EV - PV
SV = $70,000 - $75,000
SV = -$5,000
The negative schedule variance indicates that the project is behind schedule by $5,000.
b) Cost Variance (CV) = EV - AC
CV = $70,000 - $80,000
CV = -$10,000
The negative cost variance indicates that the project is over budget by $10,000.

c) Schedule Performance Index (SPI) = EV / PV

SPI = $70,000 / $75,000
SPI = 0.93
The SPI of 0.93 indicates that for every dollar planned, only $0.93 worth of work has
been completed. This means the project is progressing slower than planned.

d) Cost Performance Index (CPI) = EV / AC

CPI = $70,000 / $80,000
CPI = 0.875
The CPI of 0.875 indicates that for every dollar spent, only $0.875 worth of work has
been completed. This means the project is over budget and not as cost-effective as
planned.
Result:.
The negative SV and CV indicate that the project is behind schedule and over budget.
The SPI and CPI values below 1 indicate that the project's performance is not meeting
the planned targets. Overall, Project C is experiencing delays and cost overruns, and
corrective actions may be necessary to bring the project back on track.