Muhammad Zia-ul-Hassan E07-073 Section A Engineering Project Management Assignment # 05

Q1

Earned Value Analysis

Earned value analysis is the method of performance measurement. Earned value is the value of work performed expressed in terms of the approved budget assigned to that work for an activity or work breakdown structure component. It is the authorized work that has been completed, plus the authorized budget for such completed work. Earned Value Analysis is an industry standard way to measure a projects progress, forecast its completion date and final cost, and provide schedule and budget variances along the way.By integrating three measurements, it provides consistent, numerical indicators with which you can evaluate and compare projects. It compares the planned amount of work with what has actually been completed, to determine if cost, schedule, and work accomplished are progressing as planned. Earned Value needed because different measures of progress for different types of tasks, to roll up progress of
many tasks into an overall project status, for a uniform unit of measure (dollars or work-hours) and provides an Early Warning signal for prompt corrective action.

Q4
Budgeting of Final Year Project
The costing process in the question 3 shows the total cost of the project. Total cost of the budget is $5284. We need budget more than total cost or nearly equal to it.

Q5
Cost of Quality
The cost of quality isn't the price of creating a quality product or service. It's the cost of not creating a quality product or service. Every time work is redone, the cost of quality increases. Obvious examples include the reworking of a manufactured item, the retesting of an assembly, the rebuilding of a tool, the correction of a bank statement, the reworking of a service such as the reprocessing of a loan operation or the replacement of a food order in a restaurant. In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality. Cost of Quality falls into two categories. Cost of Achieving good quality. Cost of poor quality.

Cost of Achieving Good Quality

Preventive Costs: Preventive costs are the cost of all activities specially designed to prevent the poor quality product or service. Examples are market surveys and housekeeping etc. Appraisal Costs: These are the costs associated with measuring, evaluating or auditing product or service to assure conformance to standard or performance requirement. Examples are internal audits and automated tested tools.

Cost of Poor Quality

Internal failure Cost: These are the costs incurred when product or service fail to meet requirements prior to transfer of ownership to customer. Examples are supplies and Rework. External Failure Cost: These are the cost incurred by a business due to failure of product or service at the customer end. These costs results into warranty claims and loss of reputation.

Measurement of Cost of Quality

COQ can be measured and presented in many different ways.
Percentage of sales. Percentage of Profits. Percentage of Manufacturing costs. Rs per direct labor hour. Rs per unit of product.

Conclusion
When the cost of achieving good quality increases, cost of poor quality decreases automatically.

Benefits
Quantify the size of Quality problems. Indentify the major opportunities for cost reductions. Set cost reduction targets. Measures the result of quality improvement activities. Align quality goals with the organizational goals.

Q6
Benefits of GANTT Over PERT
1. 2. 3. 4. 5. 6. 7. 8. We can identify Task Slack easily. We can calculate Commutative Slack easily. Gantt is used for Resource loading. Gantt is used for Resource leveling. It helps to find the Early Start, Late Start, Early Finish and Late Finish of the activity. It shows milestones and work deliverables as well.
Gantt charts are more ideal for small projects than large.

The Gantt chart provides optimum opportunity to present each stage of your project. It has everything from listing goals to resource allotment.

9. The Gantt chart can be used in status reporting to show how much of the plan has been completed by displaying the progress of an activity. In the same or a parallel bar, or using color, many executives prefer this presentation format. 10. Gantt chart has calendar, so you can see precisely when the activities should be performed. 11. Gantt chart provide clarity over the pert chart. 12. Monitor the progress of project activities. 13. Coordinate and Mange project activities. 14. Obtaining better scheduling and control for subcontractor activities.