Best Method to Determine IT Resource Spending Alignment

A.

The BEST method to determine if IT resource spending is aligned with planned project spending is Earned Value Analysis (EVA), option A.

EVA is a project management technique that provides an objective measurement of a project's performance in terms of cost and schedule. It integrates the project scope, schedule, and cost elements to determine how well a project is progressing. EVA enables organizations to determine if IT resource spending is aligned with planned project spending by comparing the actual cost and schedule performance against the planned cost and schedule performance.

EVA measures the progress of a project by comparing the budgeted cost of work performed (BCWP) to the actual cost of work performed (ACWP). The BCWP is the value of the work that has been completed, based on the budgeted cost of that work. The ACWP is the actual cost incurred to complete that work. The difference between BCWP and ACWP is the earned value (EV).

EVA also calculates the planned value (PV), which is the budgeted cost of the work scheduled to be completed at a specific point in time. By comparing the EV to the PV, EVA can determine if a project is on schedule and within budget.

In addition, EVA provides the following metrics:

• Cost Variance (CV): the difference between the budgeted cost of work performed and the actual cost of work performed. A positive CV indicates that the project is under budget, while a negative CV indicates that the project is over budget.
• Schedule Variance (SV): the difference between the budgeted cost of work performed and the budgeted cost of work scheduled. A positive SV indicates that the project is ahead of schedule, while a negative SV indicates that the project is behind schedule.
• Cost Performance Index (CPI): the ratio of the earned value to the actual cost of work performed. A CPI greater than 1 indicates that the project is under budget, while a CPI less than 1 indicates that the project is over budget.
• Schedule Performance Index (SPI): the ratio of the earned value to the planned value. An SPI greater than 1 indicates that the project is ahead of schedule, while an SPI less than 1 indicates that the project is behind schedule.

In conclusion, EVA is the BEST method to determine if IT resource spending is aligned with planned project spending because it provides a comprehensive analysis of a project's performance in terms of cost and schedule, and enables organizations to identify if they are on track with the planned project spending.