19 Jan Also, explain how you need

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 Project—The 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.

Please make sure that you cite and reference all your outside sources properly. You must have

a minimum of three references, including one peer-reviewed journal article.

Even though you complete this assignment as a group, all students must submit their own paper

to their own individual Assignment box. (This Assignment box basket may be linked to Turnitin.)