A positive variance is considered good because it indicates that the project is under budget and is ahead of the pre-defined project schedule. Positive variances are useful in re allocating resources and capital from the positive variance tasks to the tasks having negative variance so as to maintain adequate balance and consistency in the project. The opposite happens for negative variances.
Two key ratios are used in the earning value analysis. These are Cost Performance Index (CPI) and the SPI. An index of more than 1 is consider good as it indicates that the project is under budget and is age had of the fixed schedule (Philipson and Antvik, 2009). The opposite goes for a performance index lower than 1.
The report discusses the importance of project role, process responsibilities and stakeholder management with respect to a prestigious project of the government of the United Kingdom which is the National Programme for Information Technology
(NPfIT) of National Health Service (NHS). The report identifies the key reasons of the management of the project which led to the subsequent failure of the project. The report is structured with a background given on the relevant project, a discussion of the key factors affecting the project and suitable recommendations given in order to establish how the project can be sufficiently improved.
The National Programme for Information Technology (NPfIT) is an important systems project started by the government of United Kingdom. The project has been criticised due to the huge number of loopholes that have been identified on the project structure and the key aspects of project management. Project roles, responsibilities and stakeholder management are key aspects which decide the success or failure of a project. Therefore, the following report is prepared with the view of identifying these key aspects of the National Programme for Information Technology (NPfIT)