Question

6. Industrial Building, Inc., has two project teams installing virtually identical, four-story commercial buildings for a customer in two separate cities. Both projects have a planned daily cost of 100 and a planned daily earned value of 100 The first 6 days for each team have progressed as follows: Team A: Team B: A: B: Day Earned Value Earned Value Cost Cost 95 95 98 94 0 102 106 109 116 99 126 118 90 92 94 98 104 112 90 95 101 89 105 3 6 Compare the two projects in terms of general progress and according to critical ratios

Answer 1

	DAY-WISE							CUMULATIVE PROGRESS
	Project A			Project B				Project A			Project B			Project A		Project B
Day	Earned Value	Cost	EV/C	Earned Value	Cost	EV/C	Planned EV/Planned Cost	Cumulative EV	Cumulative Cost	Cumulative EV/C	Cumulative EV	Cumulative Cost	Cumulative EV/C	Increase over previous day
1	90	95	0.95	90	95	0.95	1	90	95	0.95	90	95	0.95	EV	C	EV	C
2	92	98	0.94	88	94	0.94	1	182	193	0.94	178	189	0.94	2	3	-2	-1
3	94	101	0.93	95	102	0.93	1	276	294	0.94	273	291	0.94	2	3	7	8
4	98	106	0.92	101	109	0.93	1	374	400	0.94	374	400	0.94	4	5	6	7
5	104	116	0.90	89	99	0.90	1	478	516	0.93	463	499	0.93	6	10	-12	-10
6	112	126	0.89	105	118	0.89	1	590	642	0.92	568	617	0.92	8	10	16	19
Day-wise EV/C is same for both projects
Also cumulative EV/C is decreasing from Day-1 to Day-6
Both have always been less than 1 --on all days & cumulative-- decreasing more as days progress from 1 to 6
indicating that costs are increasing at a rate more than the increase in earned value as for Project A & B
or decreasing at a rate less than earned value for Project B on Day 1 & 5