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.

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 Develop integration test plan Develop Acceptance test plan $ $ $ $ 500 $ 500 600 $ 600 550 $ 550 1,650 $ 1,650 100% 100% 100% $ $ $ $ 500 600 550 1,650 Payment 1: Phase 2: Unit Testing (2 weeks) Code walkthrough with team Test software units Identify programs that do not meet specifications Modify code Re-test units Verify code meets standards $ 600 $ 700 $ 800 $ 1,200 $ 500 $ 500 $ 1,200 $ 1,300 $ 300 $ 400 $ 200 $ 200 $ 3,600 $ 4,300 100% $ 100% $ 100% $ 100% $ 100% $ 100% $ $ 600 800 500 1,200 300 200 3,600 Payment 2: Phase 3: Integration Testing (2 weeks) Test integration of all modules Identify components that do not meet specifications Modify code Re-test integration of modules Verify Components meet standards $ 600 $ 600 $ 300 $ 500 $ 1,400 $ 1,400 $ 400 $ 400 $ 200 $ 200 Payment 3: $ 2,900 $ 3,100 100% 75% 50% 75% 80% $ $ $ $ $ $ 600 225 700 300 160 1,985 Phase 4: Acceptance Testing (2 weeks) Business Review with Client $ 400 Client tests system $ 800 Identify units and components that do not meet specifications $ 550 Modify code $ 800 Retest units and components $ 700 Verify that system meets standards $ 600 Payment 4: $ 3,850 0% 0% 0% 0% 0% 0% Planned Value Actual Cost Percent Complete Earned Value Phase 1: Test Planning (1 week) Develop Unit Test Plan Develop integration test plan Develop Acceptance test plan $ $ $ $ 500 $ 500 600 $ 600 550 $ 550 1,650 $ 1,650 100% 100% 100% $ $ $ $ 500 600 550 1,650 Payment 1: Phase 2: Unit Testing (2 weeks) Code walkthrough with team Test software units Identify programs that do not meet specifications Modify code Re-test units Verify code meets standards $ 600 $ 700 $ 800 $ 1,200 $ 500 $ 500 $ 1,200 $ 1,300 $ 300 $ 400 $ 200 $ 200 $ 3,600 $ 4,300 100% $ 100% $ 100% $ 100% $ 100% $ 100% $ $ 600 800 500 1,200 300 200 3,600 Payment 2: Phase 3: Integration Testing (2 weeks) Test integration of all modules Identify components that do not meet specifications Modify code Re-test integration of modules Verify Components meet standards $ 600 $ 600 $ 300 $ 500 $ 1,400 $ 1,400 $ 400 $ 400 $ 200 $ 200 Payment 3: $ 2,900 $ 3,100 100% 75% 50% 75% 80% $ $ $ $ $ $ 600 225 700 300 160 1,985 Phase 4: Acceptance Testing (2 weeks) Business Review with Client $ 400 Client tests system $ 800 Identify units and components that do not meet specifications $ 550 Modify code $ 800 Retest units and components $ 700 Verify that system meets standards $ 600 Payment 4: $ 3,850 0% 0% 0% 0% 0% 0%