Please revise the following:

Session 5 Final Assignment

Creating a comprehensive project management plan for the Denver, CO VA hospital project involves integrating various project management components that you have drafted so far. Let's break down each section step by step:

1. Introduction

This project management plan outlines the comprehensive strategy for overseeing the completion and optimization of the Denver, CO, VA hospital. As the project manager, my primary objective is to ensure the project adheres to its scope, budget, and timeline, while maintaining the highest standards of quality and stakeholder satisfaction. The plan will detail critical components, including project objectives, scope management, schedule and cost management, risk assessment, and stakeholder communication strategies. Through methodical planning and execution, this project aims to deliver a state-of-the-art facility that enhances healthcare services to veterans and meets the defined project goals.

2. Earned Value Analysis

To complete your project management plan and provide the necessary calculations for the Denver, CO, VA hospital project, you'll need to apply the Earned Value Management (EVM) techniques. Here's a step-by-step guide to address the outlined elements:

Definitions:

Budget at Completion (BAC): The total budget for the project. In this case, BAC = $2,000,000.

Earned Value (EV): The measure of work performed expressed in terms of the budget authorized for that work.

Actual Cost (AC): The realized cost incurred for the work performed. In this case, AC = $600,000.

Planned Value (PV): The authorized budget assigned to the scheduled work.

Calculations:

Planned Value (PV):

Since we are at the 20% completion point, ( PV = 20% \times \text{BAC} ).

( PV = 0.20 \times 2,000,000 = $400,000 ).

Earned Value (EV):

Assuming the work is on schedule at 20% completion, ( EV = PV = $400,000 ).

Schedule Performance Index (SPI):

( SPI = \frac{EV}{PV} = \frac{$400,000}{$400,000} = 1.0 ).

An SPI of 1.0 indicates that the project is on schedule.

Cost Performance Index (CPI):

( CPI = \frac{EV}{AC} = \frac{$400,000}{$600,000} \approx 0.67 ).

A CPI less than 1.0 indicates the project is over budget.

Forecasted Range of Final Project Results

Estimate at Completion (EAC):

Using CPI, ( EAC = \frac{BAC}{CPI} ).

( EAC = \frac{$2,000,000}{0.67} \approx $2,985,075 ).

Estimate to Complete (ETC):

ETC = EAC - AC = $2,985,075 - $600,000 = $2,385,075.

Variance at Completion (VAC):

VAC = BAC - EAC = $2,000,000 - $2,985,075 = -$985,075.

This suggests a potential budget overrun of $985,075.

Probability-Impact Scale (Hillson and Simon, 2020)

To assess risk based on the information provided, you would typically use a probability-impact matrix to determine where cost and performance factors fall within specified thresholds. A table illustrating this concept might look like this:

| Probability \ Impact | Low Impact | Medium Impact | High Impact | |----------------------|-------------|---------------|---------------| | High Probability | Medium Risk | High Risk | Extreme Risk | | Medium Probability | Low Risk | Medium Risk | High Risk | | Low Probability | Low Risk | Low Risk | Medium Risk |

Evaluation:

Based on the CPI significantly below 1 (0.67), there is a high impact and high probability of cost overrun, placing the project in the high to extreme risk category.

Ensure your project management plan includes these components, along with a detailed discussion of corrective actions and mitigation strategies regarding the forecasted overruns and risks. This framework will help you structure your reporting and analysis in the final assignment.

3. WBS and RBS

Work Breakdown Structure (WBS)

The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team. It organizes the team's work into manageable sections.

1. Level 0: Project Name

Denver, CO, VA Hospital Project

2. Level 1: Major Deliverables

1.0 Hospital Infrastructure

2.0 Medical Equipment & Installation

3.0 Staffing & Operations

4.0 IT Systems Implementation

5.0 Project Management

3. Level 2: Sub Deliverables

1.1 Building Construction

1.2 Utilities & Facilities

2.1 Equipment Procurement

2.2 Installation & Testing

3.1 Recruitment & Training

3.2 Staff Deployment

4.1 Software Development

4.2 Network & Hardware Setup

5.1 Schedule Management

5.2 Cost Management

4. Level 3: Work Packages

1.1.1 Foundation & Structure

1.1.2 Interior Finishing

1.2.1 Power Supply System

1.2.2 HVAC Installation

2.1.1 Supplier Selection

2.1.2 Equipment Transportation

3.1.1 Job Advertisements

3.1.2 Interviewing

3.2.1 Onboarding Process

4.1.1 Coding & Application Development

4.2.1 Server Installation

5.1.1 Gantt Chart Tracking

5.2.1 Budget Allocation

Analysis to Create the WBS:

The creation of the WBS involved breaking down the project into smaller, more manageable components, ensuring that all work is captured and nothing is omitted. The WBS serves as a framework for detailed cost estimating and control along with providing guidance for schedule planning and control.

Risk Breakdown Structure (RBS)

The RBS is a hierarchical structure of potential risk sources that helps the project team identify and document risks.

1. Level 1: Risk Categories

1.0 Financial Risks

2.0 Operational Risks

3.0 Technical Risks

2. Level 2: Sub Categories

1.1 Budget Overruns

1.2 Funding Delays

2.1 Staff Shortages

2.2 Supply Chain Disruptions

3.1 Technology Failures

3.2 Compliance Issues

3. Level 3: Risk Details

1.1.1 Unexpected Construction Costs

1.2.1 Delay in Grant Approvals

2.1.1 High Staff Turnover Rate

2.2.1 Delayed Equipment Delivery

3.1.1 Software Malfunction

3.2.1 Regulatory Non-Compliance

Top Three Risks Based on EVM PMI Principles:

Budget Overruns (1.1) - This risk involves unexpected costs threatening budget compliance. EVM can help track cost performance index (CPI) to manage this risk.

Staff Shortages (2.1) - Critical for project success, managed using staffing performance metrics.

Technology Failures (3.1) - EVM can help monitor schedule variances when technical issues impact project timelines.

Analysis to Create the RBS:

The RBS was constructed by categorizing possible risks into specific areas of impact, thus enabling a structured approach to risk identification and management. The analysis relied on historical data, expert judgment, and risk assessment tools to determine the significant risk areas to focus on, helping prioritize them within the risk management plan.

This structured approach via WBS and RBS not only aids in project planning but also in execution and monitoring, ensuring alignment with project objectives and EVM principles for effective project control and management. Use this as a template for your detailed 10-15 page submission, expanding further on each section.

4. SV and CV Analysis

To address this question and include it in your project management plan, you need to understand the concepts of Schedule Variance (SV) and Cost Variance (CV) and how they relate to the critical path of a project.

Definitions

Schedule Variance (SV):

SV measures the difference between the earned value and the planned value.

Formula: ( SV = EV - PV )

Where EV (Earned Value) is the budgeted cost for work performed, and PV (Planned Value) is the budgeted cost for work scheduled.

Cost Variance (CV):

CV measures the difference between the earned value and the actual cost.

Formula: ( CV = EV - AC )

Where AC (Actual Cost) is the actual cost of work performed.

Given Values

Planned Value (PV): $2,000,000

Earned Value (EV): $2,000,000

Actual Cost (AC): $3,000,000

Calculations

Schedule Variance (SV): [ SV = EV - PV = $2,000,000 - $2,000,000 = $0 ]

Cost Variance (CV): [ CV = EV - AC = $2,000,000 - $3,000,000 = -$1,000,000 ]

Interpretation

SV = $0:

A schedule variance of $0 indicates that the project is on schedule. The work performed is exactly matching the planned schedule.

CV = -$1,000,000:

A negative cost variance of $1,000,000 indicates that the project is over budget by that amount. The actual cost of performing the work has exceeded the budgeted cost.

Relationship to the Critical Path

Critical Path:

The critical path is the series of tasks in a project that determines the total project duration. Any delay in the critical path tasks will directly impact the project completion date.

Impact of SV on Critical Path:

Since SV = $0, there is no delay from

5. Estimates at Completion (EAC)

To create the section of your project management plan focused on the analysis of the estimates at completion (EACs) using Earned Value Management (EVM) standards, let's go through the calculations step by step. EVM is a critical tool in project management that helps track project performance and forecast future costs and schedules.

Key Definitions:

Earned Value (EV): $2,000,000 (Budgeted Cost for Work Performed)

Actual Cost (AC): $3,000,000 (Actual Cost of Work Performed)

Budget at Completion (BAC): $4,000,000

Percent Complete: 20%

Calculate the Cost Performance Index (CPI):

[ \text{CPI} = \frac{\text{EV}}{\text{AC}} = \frac{2,000,000}{3,000,000} = 0.67 ]

Interpretation: A CPI of 0.67 indicates that for every dollar spent, you are earning only $0.67 worth of work. This suggests a cost overrun.

Calculate the Estimate at Completion (EAC):

EAC can be calculated using different formulas depending on the situation. Given the situation, one common choice would be:

[ \text{EAC} = \frac{\text{BAC}}{\text{CPI}} = \frac{4,000,000}{0.67} \approx 5,970,149 ]

Interpretation: The project is expected to cost approximately $5,970,149 to complete, indicating that costs are significantly over the originally budgeted amount.

Calculate the Schedule Performance Index (SPI):

Using the project completion data:

[ \text{Planned Value (PV)} = \text{Percent Complete} \times \text{BAC} = 0.20 \times 4,000,000 = 800,000 ]

[ \text{SPI} = \frac{\text{EV}}{\text{PV}} = \frac{2,000,000}{800,000} = 2.5 ]

Interpretation: An SPI greater than 1 suggests that the project is ahead of the planned schedule, which might seem counterintuitive here, given the cost overruns. It's possible that scope changes or other factors are affecting the value earned relative to the timeline.

Conclusion and Recommendations:

Based on these calculations, the project management plan should address the following points:

Immediate Review: Conduct a detailed review of the scope, resource allocation, and processes to identify causes of cost overruns.

Cost Control Measures: Implement cost control measures, review contractor/vendor performance, and ensure strict adherence to budgets moving forward.

Schedule Evaluation: Despite the seemingly favorable SPI, evaluate the schedule against actual deliverables. Ensure that the accelerated schedule is realistic and sustainable.

Risk Management: Assess and mitigate risks that could further derail costs or the schedule.

This analysis should form a critical part of your project management plan, guiding corrective action and strategic adjustments moving forward.

6. Overall Analysis

To create a comprehensive project management plan for the Denver, CO, VA hospital, focusing on the overall analysis of the project based on Earned Value Management (EVM) and the risk management plan for the project's top three risks, follow the steps below:

1. Introduction and Project Overview

Define the project goals and objectives for the Denver VA hospital.

Briefly summarize the scope, timeline, and budget.

2. Earned Value Management (EVM) Analysis

EVM is a project management technique that integrates cost, schedule, and scope to provide an accurate view of project performance.

Key Components of EVM:

Planned Value (PV): The estimated value of work planned to be completed by a certain date.

Earned Value (EV): The value of work actually performed by that date.

Actual Cost (AC): The actual cost incurred for the work accomplished.

Key Formulas:

Cost Variance (CV): EV - AC

Indicates if the project is under or over budget.

Schedule Variance (SV): EV - PV

Indicates if the project is ahead or behind schedule.

Cost Performance Index (CPI): EV / AC

A CPI greater than 1 means under budget; less than 1 means over budget.

Schedule Performance Index (SPI): EV / PV

An SPI greater than 1 means ahead of schedule; less than 1 means behind.

Analysis:

Evaluate the current project status using the EVM metrics.

Discuss trends and forecasts based on CV, SV, CPI, and SPI values.

Provide insights on project health and any corrective actions required.

3. Risk Management Plan

The risk management plan identifies, analyzes, and addresses the principal risks that could impact the project's success.

Identifying Top Three Risks:

Risk 1: Cost Overruns

Causes: Unforeseen construction challenges, material price changes.

Mitigation: Implement strict budget controls, regularly evaluate market trends for materials.

Risk 2: Delays in Construction

Causes: Weather conditions, labor shortages, or regulatory hurdles.

Mitigation: Develop a flexible project timeline, establish good relationships with local authorities, and have contingency plans for labor.

Risk 3: Compliance and Regulatory Issues

Causes: Changes in healthcare regulations, incomplete design specifications.

Mitigation: Continuous monitoring of regulatory changes, regular review of design plans by experts.

Risk Analysis:

Assign a risk level (low, medium, high) based on probability and impact.

Develop a risk response plan, detailing proactive measures and contingencies.

Include a risk register to track risks and update it regularly.

4. Monitoring and Controlling

Implement regular review processes for EVM and risk status updates.

Use project management software to track progress and gather data.

Ensure that all stakeholders are informed about current project status, risks, and mitigation strategies.

5. Conclusion

Summarize the importance of EVM in tracking project performance and ensuring successful risk management.

Highlight the key strategies and tools that will keep the project on track and within budget.

Appendix

Include detailed EVM charts and calculations.

Provide a full risk register with details on all identified risks.

By incorporating these elements, your project management plan will effectively illustrate the significance of EVM and risk management, ensuring project success at the Denver VA hospital.

7. Conclusion and Recommendation

Creating a project management plan for the Denver, CO, VA hospital requires careful consideration of various project management components. In this context, the conclusion and recommendation section is a crucial part of the plan, summarizing key insights and offering guidance for future actions. Here's a structured approach to drafting this section:

Conclusion

Summary of Project Objectives:

Reiterate the main goals of the project, such as improving healthcare facilities, expanding hospital capacity, or modernizing infrastructure for veterans' healthcare services. Highlight how these objectives align with the overall mission of the VA hospital to provide quality healthcare services to veterans.

Achievements:

Summarize the major achievements and milestones reached during the project. This might include phases of construction completed on time, budget management successes, stakeholder engagement, and enhancements in healthcare service delivery.

Challenges Encountered:

Briefly discuss the primary challenges faced during the project, such as budget overruns, scheduling delays, regulatory compliance issues, or unforeseen construction obstacles. Acknowledge how these challenges were addressed or are being managed.

Lessons Learned:

Highlight key lessons learned throughout the project. This could include insights on resource allocation, strategies for mitigating risks, or best practices for effective stakeholder communication. Lessons learned are invaluable for the improvement of future projects.

Recommendation

Future Actions and Strategies:

Recommend steps for subsequent phases of the project or for maintenance and operational strategies post-completion. This might involve continuous monitoring of healthcare services, future upgrades to hospital technology, or strategies for maintaining staff training programs.

Sustainability and Long-term Operations:

Advise on sustainable practices and operational continuity. Consider recommending green building initiatives or efficient resource management to ensure that the hospital's operations remain environmentally sustainable and cost-effective.

Stakeholder Engagement:

Recommend strategies for ongoing stakeholder engagement. Encourage regular communication and collaboration with veterans, healthcare providers, and the community to ensure that the hospital continues to meet their needs effectively.

Evaluation and Monitoring:

Suggest the implementation of evaluation mechanisms to continually assess the project's impact. This could involve performance metrics or feedback systems to gauge patient satisfaction and service efficiency.

Contingency Planning:

Encourage the development of contingency plans for future challenges or changes in healthcare needs. These plans will help the hospital swiftly adapt to any unforeseen circumstances.

In your conclusion and recommendation section, ensure you maintain a clear, concise, and forward-thinking tone. Emphasize both the success of the current project and the proactive strategies for sustaining the facility's vision and mission.