Husky Air Assignment 9 – Chapter 9

Earned Value Analysis

Suppose that the testing of the Pilot Angels system has been outsourced to another
organization called “Bug Busters.” This company is located in another country and has
marketed themselves as specialists in software testing. You have signed a contract and
sent them a copy of all the code, database tables, and files they need to fulfill their end of
the contract. The total expected cost or expected budget at completion for this
“subproject” is $12,000. The contract stipulates four payments must be made after
completion of each of the four testing phases.

The first phase of testing went as planned, but due to some problems encountered, the
second payment that you authorized was more than planned. The project manager in
charge of testing has assured you that the few problems they encountered could not be
helped and that she does not expect them to continue in the remaining phases. As a smart
project manager, you have asked Bug Busters for a work breakdown structure (WBS) and
an update of their progress because you are not so sure that these problems are atypical
and may continue throughout the testing process.

Using the following information, conduct an earned value analysis to determine whether
you believe the project will remain within its original planned budget of $12,000. Use a
spreadsheet software package to determine the Estimate at Completion (EAC) for both
typical and atypical variances.

Planned Actual Percent Earned

Value Cost Complete Value
Phase 1: Test Planning
Develop Unit Test Plan $ 500 $ 500 100% $ 500
Develop integration test plan $ 600 $ 600 100% $ 600
Develop Acceptance test plan $ 550 $ 550 100% $ 550
Payment 1: $ 1,650 $ 1,650 $ 1,650

Phase 2: Unit Testing

Code walkthrough with team $ 600 $ 700 100% $ 600
Test software units $ 800 $ 1,200 100% $ 800
Identify programs that do not meet specifications $ 500 $ 500 100% $ 500
Modify code $ 1,200 $ 1,300 100% $ 1,200
Re-test units $ 300 $ 400 100% $ 300
Verify code meets standards $ 200 $ 200 100% $ 200
Payment 2: $ 3,600 $ 4,300 $ 3,600

Phase 3: Integration Testing

Test integration of all modules $ 600 $ 600 100% $ 600
Identify components that do not meet specifications $ 300 $ 500 75% $ 225
Modify code $ 1,400 $ 1,400 50% $ 700
Re-test integration of modules $ 400 $ 400 75% $ 300
Verify Components meet standards $ 200 $ 200 80% $ 160
Payment 3: $ 2,900 $ 3,100 $ 1,985

Phase 4: Acceptance Testing

Business Review with Client $ 400 0%
Client tests system $ 800 0%
Identify units and components that do not meet specifications $ 550 0%
Modify code $ 800 0%
Retest units and components $ 700 0%
Verify that system meets standards $ 600 0%
Payment 4: $ 3,850