Dinner Party Plans: Fun Project Management Activity
What were the plans you made at the time of organizing a dinner party with friends?
For under $200, this had to happen within a time span of 10 days-from invitations to the actual dinner through to cleaning up afterward. Let's see how we can ensure that it is a success, just like a real project manager!
The barometer of success: Introducing "Critical Path" – Main Road of Your Dinner Party
Think of a road trip: there are different things to do, and some things need to happen before others.
Here is the plan:
Now draw the Map (Just Like Roadmap):
Now imagine lines connecting these steps. It looks something like this:
A (1) → B (2) → D (2) → E (3) → F (2) → G (2) → H (1)
And on the side, C (1) → G (2) → H (1)
Each Path Calculation (Route Calculating):
Path 1 (The Best): A → B → D → E → F → G → H
Therefore, this path leads you to: 1 + 2 + 2 + 3 + 2 + 2 + 1 = 13 days
Path 2 (The Least): C → G → H
This is the only path that will take: 1 + 2 + 1 = 4 days. But here's the catch: you can't cook the main meal (G) until ingredients are prepped (F) from the other path! So, even though buying decorations is quick, you still have to wait for the food prep.
Defining the "Critical Path" (Longest Route):
The longest route is Path 1 with 13 days. This is your critical path.
What does this mean for your dinner party?
From planning through serving, it will take at least 13 days to properly execute.
Activities A, B, D, E, F, G, and H are critical. If anyone is late, the whole party gets delayed (or you will be scrambling at the last minute!).
Activity C-free run-wiggle room: Buying non-perishable decor/drinks has some freedom during the 1-day to 9-day span preparation of the entire event-not holding the overall party prep.
Sounds good right?
Tracking Your Money and Time: Earned Value Management (EVM)
Now, moving on to money and time. EVM will help you realize whether you are on course and spending it justifiably.
Picture this. You are six conceptualizing days into the process.
Total Budget: $200 (that's your 'Budget at Completion' or BAC)
What you planned to complete by Day 6? (Planned Value-PV):
You were supposed to complete Activites A, B, and D.
A: 1 day work/13 total days*$200=$15.38
B: 2 days work/13 total days*$200=$30.76
D: 2 days work/13 total days*$200=$30.76
That is your PV = $15.38 + $30.76 + $30.76 = $76.92 (this is how much work you should have completed according to your plan).
What you actually did BY Day 6? (Earned Value - EV):
Suppose you completed Activities A, B, and D fully (i.e., 100 percent done), and then with respect to Activity C, you are 50 percent done.
A: Menu & guest list done = $15.38
B: Invites sent & RSVPs confirmed = $30.76
D: Shopping list & recipes finalized = $30.76
C: Half of decor/drinks bought = 0.5 * ($15.38) = $7.69
That gives us $84.59 = EV = $15.38 + $30.76 + $30.76 + $7.69 (This is the actual value of the work you have completed).
What have you ACTUALLY spent by Day 6? (Actual Cost - AC):
For instance, you spent $10 on planning, $20 on invitations (stamps/online service), $25 on most recipe books/apps, and $10 on half decor/drinks.
So your AC=$10+$20+$25+$10=$65. This is money out of your pocket.
The Mathematical Calculations- Are We on Track for the Party?
Now, let"s use those figures to launch into just how your dinner party preparations are really going!
Cost Variance (CV): Are we over or under budget?
Formula: CV= EV (what you got done) - AC (what you spent)
$84.59 - $65 = $19.59
What this means: Seeing as the CV is positive, you are doing just great! You've managed to get $19.59 worth of work from each dollar you've spent. You're under budget! It's a good thing!
Negative, and you are over budget.
Schedule Variance (SV): Are we ahead or behind schedule?
Formula: SV = EV (what you got done) - PV (what you planned to get done)
$84.59 - $76.92 = $7.67
What it means: With the SV being positive, you are ahead of schedule. Doesn't that feel good? You are cruising through the work for the party!
On the other hand, it would be behind schedule if it were less than zero.
Cost Performance Index (CPI): Are we spending efficiently?
Formula: CPI = EV / AC
$84.59 / $65 = 1.30
What that means: If the CPI is above 1, you are using the money well. For each dollar spent, you are getting $1.30 worth of work back. Very efficient!
If a value of CPI is below 1, it means you are spending more than what you are fetching in return.
Schedule Performance Index (SPI): Are we using time wisely?
Formula: SPI = EV / PV
$84.59 / $76.92 = 1.10
What that means: If the SPI is over 1, you are finishing more work than planned, so you are efficient in your use of time.
If it were below 1, you would not have been achieving what you should for the time.
Estimate at Completion (EAC)----"How much will this party cost when everything gets done?"
Let's try to predict the very possible final cost of your dinner party!
Scenario 1: Assuming things continue to be as they are!
Formula: EAC = AC (current spend) + (BAC (total budget) - EV (work done)) / CPI (spending efficiency)
$65 + ($200 - $84.59) / 1.30 = $65 + ($115.41) / 1.30 = $65 + $88.78 = $153.78
What this means: If you keep that kind of efficiency, then your dinner party will cost you $153.78! Well below your $200 budget! Extra money for fancy appetizers!
Scenario 2: Whoops, it's a mess, and previous messes continue.
Formula: EAC = BAC / CPI
$200 / 1.30 = $153.85
What this means: Any problems that would crop up (like running around last minute to buy a specific wine), based on your current good performance, would still show around $153.85 for final cost. That is still brilliant!
Traffic Light System - Instant Alerts for Party Preparation!
That's your simple red, yellow, green traffic light system as applied to your party project!
CPI or SPI>1.0: GREEN LIGHT! Wow! You're doing great! Keep it up! (Yours are 1.30 and 1.10-both green!)
CPI or SPI = 1.0: YELLOW LIGHT! You're on target, but keep your eyes peeled for slips.
CPI or SPI < 1.0 but > 0.9: YELLOW LIGHT! You're facing minor problems, so be warned.
CPI or SPI < 0.9: RED LIGHT! Massive problems! You need to fix this fast or all your guests will have are crackers and water! (Not the case for your gathering!!)
A Real-World Action Plan- What Should be Done Next?
Here's a possible action plan for your dinner party, based on all of this:
Continue doing just as great as you are! You're doing an excellent job!
Encourage your co-workers: They are helping you in being efficient!
Buy your non-perishable decor/drinks any time in days 1-9: Remember the wiggle room for Activity C? Use it!
Look for other activities that have "wiggle room": See if there are any other things you can do flexibly.
Celebrate the wins! A party is great fun, celebrate how far you've gotten!
Get more friends to help! More hands make light work, especially in cooking and clean-up.
Tell your guests how you made it all happen! They'll be impressed.
Monitor daily: Check with daily intervention to timely address issues.
Act on the decision: If something goes wrong, like not finding a key ingredient, do it fast!
The "MVAC" Family- Your Party's Project Management Partners
Think of these as the wise elders of party planning management:
PV (Planned Value)- "Grandpa Plan": Always has a plan for every course and every guest.
EV (Earned Value) -"Auntie Actual": Always nagging about money spent, but very efficient in execution-the one getting things done and serving.
AC (Actual Cost) - "Uncle Money": "How much did you really spend on those fancy cheeses?"
BAC (Budget at Completion) -"Momma Total": The total budget for the entire dinner party-from tossing appetizers to clearing desserts.
These four are essentially the core of the Earned Value Management (EVM); check on them, and you will be a party planning pro in no time, throwing one out like a boss!
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