Question

6. Your project is expected to run for three consecutive years. Your organization is introducing earned value management as part of the planning and managing of this project. The project budget Php 50,000.000. The budget is consistent across the three years. You are exactly 18 months into the project, 30 % of the total budget has been spent, and 40 % of the work is complete. Regarding its schedule and budget, by what extent your project status stand? 7. Due to your great success on your last project, you have been assigned to a new project with a very difficult customer. Based on lessons learned from others, you recognize that is critical that your project has well-defined acceptance criteria. What is the significance of a well-articulated statements acceptance criteria?

Answer 1

Solution:

We need to determine four critical terms: BAC, PV, AC , and EV.

BAC is the project budget Php 50,000

PV is the measure of how much work should be complete.From the question, we can say that we 18 months into a project . This means half of the work should be complete.

So PV=0.5 X Php 50,000 =25,000

Then AC is a measure of how much money has been spent to date.From the question, we can say that 30%of the budget has been spent.

So AC=0.3 X Php 50,000 =15,0000

EV is the measure of how much work has been completed.We have 40% of work complete,

EV=0.4 X Php 50,000 =20,000

Therefore Schedule Variance, SV = EV-PV

SV=20,000 - 25,000

SV= - 5,000 which means that project is behind schedule since SV negative.

Cost Variance, CV=EV- AC

CV=20,000 - 15,000

CV= Php 5000

Since CV is positive the project is running under budget.