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Ariba Implementation at MED X Managing Earned Value Case Solution

Solution Id Length Case Author Case Publisher
2564 2389 Words (10 Pages) Mark Jeffery, Joseph F. Norton, Alex Gershbeyn, Derek Yung Kellogg School of Management : KEL224
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MED-X Inc. selected Implementation Technologies to build the Ariba e-procurement platform. The project began on May 1st, 2001, and completed CPR on June 25th. However, it was evident by September 1st that now the project would not be completed by October 1st. Martin, the consultant, couldn't figure out what went awry by analyzing the project timeline, so he decided to evaluate the earned value. The crucial path had two major components: technical infrastructure and application customization.

The costing chart revealed that everything went fine. According to the earned value chart, everything went smoothly for software customization but went poorly in June for technical infrastructure, which was also over budget and behind deadline. It was expected that it would take additional 10 days to arrive. Possible delays include part-time workers being absent early stages of the project, equipment arriving late at the end of June, a portion of the system testing being planned late in July, and some biased design in the testing. Martin should have reported these troubling incidents as soon as he became aware of them. He could have controlled the income approach from the start of the project, allowing him to address these concerns sooner. And there are certain lessons he may take away from this endeavor to avoid similar problems in the future.

Following questions are answered in this case study solution:

  1. Which of the two components is underperforming according to the plan? How do you know this?

  2. Are the components of the projects within budget? How do you know?

  3. What can you conclude by looking at the combined earned value data for the project?

  4. Why did Terry Baker think that the project was going according to plan the entire time?

  5. How much longer will the project take?

  6. What should Martin have done earlier in the project timeline to prevent delays?

  7. What should Martin do when managing future projects to prevent similar problems from developing?

Case Study Questions Answers

1. Which of the two components is underperforming according to the plan? How do you know this?

Project Timeline- According to the plan schedule status, the project began in May and became live on October 1st. Despite the completion of the CRP on schedule, the project avoided going online on Oct 1st. Furthermore, the schedule performance assessment for the project's operational section stayed at 0.929 somewhere at end of the season and 0.919 at end of the Summer, indicating a timetable delay. The CRP, on the other hand, represented 35.4 percent of the overall execution phase duration, and the proportion for prospective timeline delay post project completion was unclear.

The Project Manager restarted the project with some extra staff and resources at the end of October, and it became available for the first time in January. All R&D actions were finished and delivered by January 1st, and the project was online as of that day, while the Seeding and test operations were ongoing.

Project Budget-

The technical infrastructure- Cost performance index implied the project was over budget (CPI<1) However, the infrastructure was ready on one level. The production crew banded together and expressed their concerns to the project manager. The project was intended to have a modest infrastructure, and what they had was more than enough.

"We can create this product five times a day without expanding the infrastructure," Jenna, the sales manager, explained. She was correct. The factory was ready, and the machinery was running, but the infrastructure was a concern.

The SPI (94.4), Controlling Ratio (.9), and CPI (91.7 percent) suggest that the network process is both behind time and over budget, while the BTC, and ETC are 184 and 194.97, respectively. The BCWS of May was consistent in the season (June, July, August, and September because this was the main aim of the planning to be done, but the biggest reduction can be noticed in the middle of Oct at 60000.

2. Are the components of the project within budget? Why?

MED-Ariba X's implementation consisted of two major components. The first is software modification, while the second is technical infrastructure. Software adaptation was completed on time and under budget. However, the delay was caused by a technical infrastructure project. The SPI index for the technical infrastructure part of the project was reported in the literature at the end of This month and 0.919 in July. The project appeared to be reclaiming some momentum lost in the initial stages. As a response, the operation was postponed in late June after CRP and then subsequently in Jul even during the "Build phase."

The software customization component of the project was completed on time and under budget. The SPI & Core inflation could be utilized to confirm this when taking into consideration variables. The CPI was greater than just 1 in most of the periods that the operation was active, suggesting that it was finished on time. Furthermore, the average Ep. of program customization appears to be greater than somewhere from May to Sept., indicating that this aspect of the research is ahead of schedule. That is also why the aggregate earned value analysis gave a misleading overview of the process being finished on time and within budget.

So, if the total earned value (SPI) is more than one, it may be assumed that the projects are on track and will be finished under budget and ahead of schedule. As the management can see, the vac is to be in the negative, indicating that the project is to be approved and may be managed by remaining inside the present budget circle. Project budgets contain all project-related expenses. Wages, benefits, payroll taxes, and overhead costs are all examples of labor expenses. Material procurement expenses comprise the expenses of products, processes, infrastructure, and supplies obtained through third-party vendors. Because they all have to fit inside the budget.

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