Managerial Approach and Monitoring - Assignment Example

Monitoring has additional functions that include auditing, getting to learn from past mistakes, and keeping the top management well-informed.
Routine reports and some problems associated with them.

Routine reports are supposed to be primed and submitted on issues required by the organization to help the organization's management to take action on the issues that are related to the daily affairs of the business. The main aim of a routine report is to make the management aware of the happenings within the organization, progress where there might be a deviation, and what kind of resolutions are made in conjunction with solving the problem.

There are a few problems associated with routine reporting; one is that data collected and submitted within the organization is neither complete nor accurate for tracking outcomes or process performance across the entire organization. Secondly, systematic evaluation of data may be hit with challenges as a result of inconsistencies (Meredith & Mantel, 2012).

The purpose of earned value
The main purpose of earned value measures the entire organization's performance by use of an aggregate performance measure which is the earned value. The earned value of performed work for any task in progress is obtained by multiplying the estimated percent physical completion of the task for each task by the planned cost for those particular tasks. The result should be the amount that may have been spent on the activity thus far; this can then be paralleled with the actual amount that has been spent (Meredith & Mantel, 2012). Having a summarized estimate of the percent completion of any project without the keen study of every of its work and tasks units is not sensible in a way.

Chapter 10b
Earned Value (EV)
Planned Value (PV)
Actual cost (AC) = cost * time
CPI - cost performance index
SPI - schedule performance index


CPI =EV/AC
SPI = EV/PV
cost:
Actual cost (AC) = cost * time
AC= 34000
cost=?
time = 5 months
if 1 day = 24hrs
30 days
30*24*5 =3600
let cost be y
34000 = y * 3600
34000= 3600y
y= 34000/3600
hence cost per hour = $ 9.4
every month is = $ 6800

CPI = EV/AC
EV = $39000
AC = $34000
CPI = 1.15
SPI = EV/PV
EV= $39000
PV= $42000
= 39000/42000

SPI = 1.0 Read More