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Pages:
2 pages/≈1100 words
Sources:
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Level:
Other
Subject:
Management
Type:
Other (Not Listed)
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 18.72
Topic:
Project Management (Other (Not Listed) Sample)
Instructions:
Assume that you have completed three months of the project. The BAC was $120,000 for this six-month project. You can also make the following assumptions:
PV = $60,000
EV = $55,000
AC = $50,000
a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?
C. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?
d. Use the SPI to estimate how long it will take to finish this project.
e. Sketch an earned value chart using the information from your answers to parts a through d. Use Figure 7-6 as a guide. source..
Content:
Tasks
Task1:
ASSUMPTIONS:
* Rate of labor for project managers and team members i.e Kim, Ashok and Alfreda: $20/hr
* Rate of labor for Bobby i.e the I.T guy: $30/hr
* Cost for each events: $1000(for refreshments and prizes)
* Project’s Duration: 6months
Task3:
BAC = $120,000
PV = $60,000
EV = $55,000
AC = $50,000
* CV(Cost Variance) = EV – AC = $55,000 - $50,000 = $5,000
* SV(Schedule Variance) = EV – PV = $55,000 - $60,000 = -$5,000
* CPI(Cost Performance Index) = EV/AC = $55,000/$50,000 = 1.1
* SPI(Schedule Performance Index) = EV/PV = $55,000/$60,000 ≅ 0.92
* The project is behind schedule because the schedule variance is less than zero and the schedule performance index is less than one i.e SV<0 and SPI<1.
* The project is under budget because the cost performance index is greater than one and the cost variance is greater than zero i.e CV>0 and CPI>1.
* EAC(Estimate at Completion) = BAC/CPI = $120,000/1.1 = $109,091.
* The estimate at completion is les...
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