Performance Schedule of the Project
Performance baselines are schemes and layouts that have been accepted and documented by a team involved in management of a particular project. A team of experts involved in implementing a project is normally tasked with coming up with sublime baselines during the planning stage of the project. Performance baselines are always supposed to be updated continuously during the project execution phase. Baselines engulf matters like quality baseline, scope baseline, schedule baseline, cost baseline etc.
In our case scenario, that is a real estate business we can create a performance estimate variation of costs and schedule variables over a period of time. To use of MS project we can thus be able to compare compounded spending trends in relation to a laid down time line.
A stepwise approach in the determination of performance measurement baseline is as follows:
- Breakdown of work structure
- Scheduling of work
- Allocation of budget
- Quantification of performance objectives
In our case, a work breakdown structure will involve a hierarchic phase up to the completion of a real estate house project. It is required that all resource be named and documented for the purpose of budgeting .Such resources include building materials, water, land, labor, contract and all the necessary stuff needed in the building industry (Harrison,1992).
Real estate business as any other business aim at reducing cost production in a bid to maximize profits. It is thus an important factor that scheduling of work is done up to precision. Personnel required to manage resources and ensure that all the plans are done on time are assigned their duties. Take an example of a project engineer required to supervise installations of electrical and mechanical components in a particular building in an estate. He or she is expected to ensure that all the installations are done on time.
The most essential part of planning is budgeting cost for work schedule otherwise known as BCWS. It involves budgeting and allotting of funds to the entire project (Cioffi,2002). A real estate business should allocate funds in rewarding all the factors of production involved in the project. Such budgets will tend to lean much on predicted customer costs and optimal management costs.
Last but not least, a business involved in sale of houses is expected to quantify performance objectives of an entire project. The team management involved should draw the thin line that separates failure and success. This can easily be achieved by barely giving eventual objectives that will act as a yardstick at the end of the project.
As state earlier technology has been of huge boost to project management in recent years. MS project software is just but an example of a how project managers keep tabs on various projects across the globe. The software’s essence can't underestimate. With the planning stage exited, a baseline plan can now be established (Tinnirello,2000). This is where MS project plays a key role. A baseline created through an MS project assists the team in monitoring the project throughout the metamorphosis .This is then compared with the original plan making decision making much easier than before. A real estate company for example can thus learn from experience and perform even better in future projects.
Let us now provide an overview of how a real estate business will benefit from the software. To start with, a project manager will input variables like to estimate capital, dates of events etc. The baseline then has to be saved. In MS project 2007 for example one chooses tools, tracking, set a baseline. One has to accept all the defaults and then click ok. The dynamics of MS project are essential and each project manager needs a technical know-how of the software.
Application of earned value analysis to forecast future costs
Earned value analysis is a tool that controls variables like costs and time in a project. It employs mathematical formulae to predict the future trends. It contains three major elements which are: Actual cost, planned value and earned value.Furthermore,variables involved in the technique are cost variance and the schedule variance. The indices needed are Schedule performance index and cost performance index. For ease, variances show the value of money and indices the ratio. Both are thus important.
In the case of a real estate business, the predicative analysis will dwell on estimate to complete analysis which dwells on the amount needed to complete remainder of project work. The other is estimate at completion analysis that analyzes approximate amount needed for an entire project.
Project management is a vital part of most modern business venture. Its essence is coupled by technological advancements that have come to be. Lots of mistakes can be avoided with lots of sums saved through them. This is just an indication of how the future is bright for entrepreneurial venture.