Question

You are given the following information for a one-year project: Planned Value (PV) - $23,000, Earned Value (EV) - $20,000, Actual Cost (AC) = $20,000, and Budget at Completion (BAC) = $120,000. Answer each of the questions below to complete your assignment. Use the same numbers as the assignment when you give your answer, I only grade answers that correspond the assignment questions. 1. For this one-year project calculate: a. cost variance, b. schedule variance, C. cost performance index (CPI), and d. schedule performance index (SPI). 2. Explain your assessment on how the project is doing: Is it ahead or behind schedule? Is it under or over budget? Use calculated variances and indexes to support your argument. [50- 100-word response.] 3. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Why? (50-100-word response.) 4. Estimate how long it will take to finish this project using SPI. 5. Sketch (free-hand sketch acceptable) a graph to show the relationship between PV, AC, and EV. Interpret the sketch explaining on-budget (cost) and on-time (schedule) progress of the project. [75-150-word response.)

Answer 1

Answer 1

A cost variance = Earned Value - Actual cost

Earned value = 20000

Actual Cost = 20000

Cost variance = 20000 - 20000 = 0

B schedule variance = earned value - planned value

earned value = 20000

planned value = 23000

schedule variance = 20000 - 23000

= -3000

Negative value means that we are behind schedule.

C cost performance index = Earned Value / Actual cost

= 20000/20000 = 1

When CPI is 1 , it means project is performing on budget

D schedule performance index = Earned value / planned value

= 20000/23000

= 0.869

This means that for every estimated hour of work, the team has completed only 0.8 hours i.e. 45 minutes

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