Question

Complete the following exercises and submit them in a word document (10 points). Project ABC Scope = 10 chairs @ $10.00 = $100.00 PV = Timeframe = 10 days At the End of the 5th day 4 chairs were EV = Completed at a cost of $11.00 each CPLE SV = SPIE To install a 10,000 feet fence at a cost of $10.00/per foot. It is estimated that 500 feet of fence can be installed per week for a total of 20 weeks. After 12 weeks and with 50% of work completed $45,000.00 has been spent Calculate the following and submit the exercise results in a Word document. Budget at Completion (BAC) = #feet fence * cost/foot Planned Value (PV)- BAC * (%time passed) Earned Value (EV) BAC * % completed Actual Cost (AC) Cost Variance (CV) _EV - AC Schedule Variance (SV) EV - PV Cost Performance Index (CPI) . EVIAC % Schedule Performance Index (SPI) — EV/PV % Estimate at Completion (EAC) BAC/CPI Estimate to Complete (ETC) EAC-AC Variance at Completion (VAC) BAC-EAC To Complete Performance Index _____ (BAC-EV)(BACIAC)

Answer 1

ANSWER FOR QUESTION NO I

(1) Planed value is the value of the work that should have been completed so far. (as per schedule) . Here work should have been completed after 5th day is  [ (100%/10) X 5] = 50%

PV or planned value = % of BAC

PV = 50% of $ 100

PV = $ 50

(2) Actual cost is the cost of work performed

AC or actual cost = 4 chairs X $ 11 = $ 44

(3) EV = % of completed work X BAC

Here, Percentage of work completed = [4/10] X 100 % = 40%

EV = 40% X $ 100 = $ 40

(4) CV = EV - AC = $ 40 - $ 44 = - $ 4 or $(4)

(5) CPI = EV/ AC = [$ 40 / $ 44] X 100 % = 90.90%

(6) SV = EV - PV = $ 40 - $ 50 = - $ 10 or $ (10)

(7) SPI = EV/ PV = [$ 40/ $ 50] X 100 % = 80%

ANSWER FOR QUESTION NO 2

(1) BAC or budget at completion = 10,000 ft fence X $ 10.00 cost per foot of fencing

BAC = 10,000 X $ 10 = $ 100,000

(2) PV or planned value is the work that should have been completed as per schedule. Here, work should have been completed after 12th week is [ ( 100%/20)X 12] = 60%

PV = 60% of BAC = 60% of $ 100,000 = $ 60,000

(3) EV = % of completed work X BAC

EV = 50% of $ 100,000 = $ 50,000

(4) AC = $ 45,000 ( given in the question)

(5) CV or cost variance = EV - AC = $ 50,000 - $ 45,000 = $ 5,000

(6) SV or schedule variance = EV - PV = $ 50,000 - $ 60,000 = -$ 10,000 or $ (10,000)

(7) CPI = EV / AC =[ $ 50,000 / $ 45,000] X 100 % = 111.11%(approximately)

(8) SPI = EV / PV =[ $ 50,000 / $ 60,000] X 100 % = 83.33% (approximately )

(9) EAC or estimate at completion = BAC/ CPI

EAC = $ 100,000 / 1.111 = $ 90,000 ( rounded up)

(10) ETC or estimate to completion = EAC - AC

ETC = $ 90,000 - $ 45,000 = $ 45,000

(11) Variance at completion = BAC - EAC

Variance at completion = $ 100,000 - $ 90,000 = $ 10,000

(12)To Complete performance index = ( BAC - EV) / ( BAC - AC)

The given formula in the question is wrong for TCPI. The correct formula is mentioned above.

TCPI = ( $ 100,000 - $ 50,000) / ( $ 100,000 - $ 45,000) = 0.909