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Organization called “Bug Busters.”

    Suppose that the testing of a 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 time schedule for the testing is as follows: Test Planning 1 week, Unit Testing 2 weeks, Integrated Testing 2 weeks, and Acceptance Testing 2 weeks. 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. There are still concerns at the end of Phase 3. 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 and on schedule. Use a spreadsheet software package to determine the Estimate Cost at Completion (ECAC), the Estimate Cost to Completion (ECTC), the Estimate Time at Completion (ETAC), and the Estimate Time to Completion (ETTC) for both typical and atypical variances. Planned Value Actual Cost Percent Complete Earned Value Phase 1: Test Planning (1 week) 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 (2 weeks) 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 (2 weeks) 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 (2 weeks) 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