| Course | MGT 474 Project Management |
|---|---|
| Module | Module 7 |
| Paper type | Earned value status report |
| Length | About 1,080 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for MGT 474 Module 7
Ninety-One Cents of Work for Every Dollar: An Earned Value Status Report on a River Otter Exhibit 73 Weeks In
Student Name
Business Administration Program, Aspen University
MGT 474: Project Management
Instructor Name
Month Day, Year
Ninety-One Cents of Work for Every Dollar: An Earned Value Status Report on a River Otter Exhibit 73 Weeks In
Work on the otter exhibit at Meadowlark, a composite Wichita zoo, began in February 2024 from a base budget of $1.56 million, contingency of $290,000 and a 106-week critical path, leaving a 15-week buffer before the Memorial Day 2026 opening. At the end of June 2025, the 73rd week, the pool shell was finishing, the holding building was framed and the board asked for a status report. This report uses earned value management to answer whether the project is on schedule and on budget, and what will happen if nothing changes.
The Method
Fleming and Koppelman (2010) describe earned value as a way of measuring project performance by comparing three quantities. Planned value is what the work meant to be finished by a date was budgeted to cost. Earned value prices the work truly finished at those same budget rates. Actual cost is the money really spent on it. Comparing earned value with planned value shows schedule performance; comparing earned value with actual cost shows cost performance. The PMI standard defines these measures and the forecasts built from them (Project Management Institute, 2019). Earned value for each work package was measured by the percent complete agreed between the project manager and the contractor, using milestones such as poured walls and passed inspections.
Status 73 Weeks In
| Measure | Formula | Value |
|---|---|---|
| Planned value | Budget for work scheduled | $1,010,000 |
| Earned value | Budget for work completed | $930,000 |
| Actual cost | Spent on work completed | $1,020,000 |
| Schedule variance | EV minus PV | -$80,000 |
| Cost variance | EV minus AC | -$90,000 |
| Schedule performance index | EV divided by PV | 0.92 |
| Cost performance index | EV divided by AC | 0.91 |
| Percent complete | EV divided by base budget | 60% |
| Estimate at completion, CPI method | Base budget divided by CPI | about $1,711,000 |
| Estimate at completion, CPI and SPI method | AC plus remaining work divided by CPI times SPI | about $1,770,000 |
Interpreting the Numbers
The project is behind schedule and over cost. It has completed $80,000 less work than planned and spent $90,000 more than the work completed was budgeted to cost. If cost performance continues at the current rate, the base work will cost about $1.71 million; if both cost and schedule pressures continue, about $1.77 million. In addition, $85,000 of contingency was drawn earlier for dewatering when groundwater appeared during excavation, a risk the register had anticipated. Adding that draw to the CPI forecast gives about $1.80 million, leaving roughly $55,000 of contingency within the $1.85 million budget, plus the board's $55,000 reserve. The project can still finish within budget, but the margin is thin.
Forecasting the Finish
Schedule variance in dollars becomes misleading late in a project, because it returns to zero when all work is done, however late. Vanhoucke and Vandevoorde (2007) used simulations of many project networks to compare methods for forecasting duration from earned value data and found that the earned schedule method generally gave the most reliable forecasts, especially later in projects. Earned schedule asks when the current earned value should have been reached under the plan. The plan reached $930,000 at the 67th week, so six weeks of schedule have been lost, and the time-based performance index is 67 divided by 73, or 0.92. Dividing the 106-week plan by 0.92 forecasts about 115 weeks, mid-April 2026. That uses about 9 of the 15 buffer weeks with 60% of the work complete, a warning sign but not yet a missed opening.
How Earned Value Was Measured
Earned value depends on honest measures of progress. Rather than asking the contractor for a general percent complete, which tends to run optimistic, the project manager credited work packages only at defined milestones. The pool shell, for example, earned 25% when excavation passed inspection, 50% when the floor was poured, 80% when the walls passed inspection and 100% when the waterproof coating was accepted. Small work packages were credited 0% until finished. These rules make the earned value figure harder to inflate and easier for the board to trust.
Reading the Indexes Together
The two indexes tell a consistent story. An SPI below 1.0 alone could mean work started late but is proceeding at normal cost; a CPI below 1.0 alone could mean higher prices on schedule. Both below 1.0 at once usually means rework or productivity problems, which is what the causes below confirm. A third measure, the to-complete performance index, shows that finishing within the $1.56 million base would require a CPI of about 1.17 on the remaining work, far better than achieved so far, so the base budget alone is no longer a realistic target and contingency must cover the difference.
Causes
Three causes explain most of the variance. A section of the pool wall failed inspection after a cold-weather pour and had to be removed and repoured, costing about $40,000 and three weeks. Rebar and steel prices rose after the contract's price adjustment clause took effect, adding about $30,000. The rockwork crew, a specialty subcontractor, worked more slowly than estimated on the curved pool edges.
Corrective Actions
The project manager recommends four actions. Rockwork will overlap with the start of water testing in sections not affected by the work, recovering about three weeks, with the veterinarian's agreement. Concrete pours will be scheduled only when forecast temperatures exceed 40 degrees, with heated blankets on standby. The contractor and project manager will review the remaining steel purchases to lock prices now. And the sponsor will be asked to confirm that the $55,000 reserve remains available.
What the Board Needs to Decide
The board does not need to act today, but it should know that the reserve may be needed and that the opening date now depends on the corrective actions working. If the next report shows buffer use rising faster than progress, the sponsor will bring options to the board, such as opening with temporary graphics.
Next Report
The next report, at the 81st week, will show whether the corrective actions have raised the indexes and slowed buffer use.
Conclusion
Earned value shows that the otter exhibit is about six weeks behind its plan and roughly 9% over cost on completed work. Forecasts suggest a final cost near $1.80 million and opening in April, inside the budget and buffer but with little room left. The causes are specific and the corrective actions target them, giving the sponsor a clear view of where the project stands and what is being done.
References
Fleming, Q. W., & Koppelman, J. M. (2010). Earned value project management (4th ed.). Project Management Institute.
Project Management Institute. (2019). The standard for earned value management.
Vanhoucke, M., & Vandevoorde, S. (2007). A simulation and evaluation of earned value metrics to forecast the project duration. Journal of the Operational Research Society, 58(10), 1361-1374. https://doi.org/10.1057/palgrave.jors.2602296
MGT 474 Module 7 instructions, in plain terms
Control is the work of Module 7 in Aspen's MGT 474: measuring where a project stands against its baseline and deciding what to do about any gap. Earned value is the usual tool, and a status report the usual product. Defer to your classroom's prompt for its required format; this example reports on the exhibit planned in earlier modules. Explain planned value, earned value and actual cost. Calculate schedule and cost variances and performance indexes. Forecast the estimate at completion and the finish date, noting the method used. Explain the causes behind the numbers. Recommend corrective actions with owners. Report in a form a sponsor can read quickly.
How this MGT 474 Module 7 example is built
The report covers Meadowlark Zoo's otter exhibit 73 weeks into the project, June 30, 2025. Fleming and Koppelman's book on earned value project management explains how measuring work performed against plan and cost reveals true status. The PMI standard for earned value management defines the measures. A table shows planned value $1,010,000, earned value $930,000 and actual cost $1,020,000, giving a schedule variance of minus $80,000, a cost variance of minus $90,000, an SPI of 0.92 and a CPI of 0.91. The estimate at completion is about $1.71 million. Vanhoucke and Vandevoorde's Journal of the Operational Research Society study found the earned schedule method forecast duration more reliably than earlier methods; it gives about 115 weeks. Causes include a failed concrete pour and rebar price increases. Actions include overlapping rockwork with water testing.
Reading the MGT 474 Module 7 grading rubric
Earned value reports are graded on correct calculations, accurate interpretation, sound forecasts and corrective actions that address the causes. This example defines each measure, shows every calculation in a table and interprets the indexes in plain terms. Forecasts use more than one method, and Vanhoucke and Vandevoorde's research justifies using earned schedule for time. The causes are traced to specific work packages. Corrective actions name owners and their expected effect on the forecasts, the to-complete index tests whether the base budget is still realistic and the report links cost forecasts to remaining contingency.
MGT 474 Module 7 help from the desk
Earned value papers often calculate variances correctly but stop there. Interpret what the numbers mean for the sponsor, forecast the outcome and recommend action. Another weakness is confusing earned value with actual cost; earned value is the budgeted cost of work actually completed. Show the formulas you use. Forecast duration as well as cost, and note that schedule variance in dollars loses meaning late in a project. Trace variances to causes in specific work packages. Link the forecast to contingency and reserve. Finally, keep the report short enough for a busy sponsor, with the key message first. Explain how progress was measured, since earned value is only as honest as its inputs.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Aspen University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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MGT 474 Module 7 questions, answered
What does MGT 474 Module 7 usually ask for?
Aspen's MGT 474 covers monitoring and control in this module, so an earned value status report with variances, forecasts and corrective actions is typical. Read your classroom prompt.
What is earned value?
The budgeted cost of the work actually completed by the status date, compared with planned value and actual cost to judge performance.
What do CPI and SPI mean?
The cost performance index is earned value divided by actual cost; the schedule performance index is earned value divided by planned value. Values below 1.0 indicate overruns or delays.
Where can I find a free MGT 474 Module 7 sample paper?
The example above reports a zoo exhibit's status 73 weeks into the project with earned value measures, cost and schedule forecasts and corrective actions.
How do you forecast a project's finish date with earned value?
The earned schedule method, which Vanhoucke and Vandevoorde found performed well, compares when the current earned value should have been reached with the actual time elapsed.