Wil Fence is a large timber and Christmas tree farmer who is attending a project
management class in the fall, his off season. When the class topic came to earned
value, he was perplexed. Isn’t he using EV?
Each summer Wil hires crews to shear fields of Christmas trees for the coming
Holiday season. Shearing entails having a worker use a large machete to shear the
branches of the tree into a nice, cone shaped tree.
Will describes his business as follows:
A.I count the number of Douglas Fir Christmas trees in the field (24,000).
B. Next, I agree on a contract lump sum for shearing with a crew boss for the
whole field ($30,000).
C. When partial payment for work completed arrives (5 days later), I count
or estimate the actual number sheared (6,000 trees). I take the actual as a
percent of the total to be sheared, multiply the percent complete by total
contract amount for the partial payment [(6,000/$30,000 5 25%), (.25 3
$30,000 5 $7500)].
1.Is Wil over, on, or below cost and schedule? Is Wil using earned value?
2. How can Wil set up a scheduling variance?
Is Wil over, on, or below schedule? Explain.
· Is Wil using earned value? Explain.
· How can Wil set up a schedule and cost variance?
· What method can Wil use to control any changes in scope to the project, such as change in shape of shearing from his customers?
· What alternatives are available to Wil to accelerate the completion of the tree trimming project?