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Group Project, Part III (Module 4) The Control Cost Process

Situation: You're back on schedule. However, on your last visit to the house, you saw that the baseboards and casings are not acceptable after 8 hours of charged work to activity 7.3 by Curley and Moe, a standard crew. On closer examination, it appears that the initial framing and drywall work were not exact, but are well within building standards. You are concerned that your standard two man crew, Curley and Moe, may not have the skill to install the baseboards and casings without a significant amount of rework and delay. You call Gus and Leo, the elite carpentry crew you can use. They can be made available, but their combined hourly rate, including fringe and overhead, is $50/hour more than the budget. (See the crew cost spreadsheet.) Gus is confident that he and Leo can fix what has been constructed and finish the remaining work in 72 hours without overtime. Gus also mentioned that he and Leo could do the 80 hours of finish work. You'll consider that, but you're pretty confident that Curley and Moe can get it done in the 96 hours budgeted. What should you recommend to your supervisor? There are two worksheets (which you need to complete) for baseboards and finishwork that can assist you with making your decision.

Assignment: Complete the third stage of your Group ProjectThe Control Cost Process. Your assignment for Module 4 is to work with your group to prepare a report to your supervisor regarding your issues from the situation and any other issues that you think should be reported. Also, include Earned Value calculations for VAC, CPI, EAC (using the remaining formulas not completed last week except the bottoms-up), ETC (no need to re-estimate), TCPI using the BAC formula, and the EAC formula. (Include calculations for all methods of calculating EAC except the bottoms-up.) Although PV, EV, AC, BAC, SV, SPI, and the EAC (using the EAC=AC+BAC-EV formula) were completed last week, include those in your report. Compare the different methods used to calculate EAC and TCPI. Explain why the values differ. Which would you give the most credence in forecasting this project? Also, explain how you need to control costs on this project. Demonstrate your knowledge of the core value of responsible stewardship by minimizing the cost.