PROJ 592 Week 5 Assignment Problems..

Problems 5-1 through 5-2 (Graded)

5-1 Earned Value Calculation

You are 4 months into a 6 month project. The project is linear, which means that the progress and spending occurs at a constant rate. Our crack project team of highly skilled associates has worked diligently and put in extra hours to keep the project going.  Our accounting department has provided the following data at the end of month 4:

Actual cost to date = $88,800

Planned expenditures to date = $101,000

The CFO is excited and has sent you an email congratulating you for being 12.07% under budget. However, is it really time to hold a team celebration? That would be fun but your project manager mentality kicks in. Those numbers look good but how are we ‘really’ doing? To understand the true project performance, we need to apply earned value techniques.

The missing piece we need is Earned Value (i.e. what we have actually accomplished so far). You meet with your team and find that only 6 of the 7 tasks scheduled to be complete by the end of month 4 have actually been completed.

Task

7 isn’t even started! This information gives you the final data you need to apply ‘Earned Value’ and develop an objective analysis.

What are the PV, EV, and AC for the project at the end of month 4? What are the SV, CV, SPI, and CPI for the project? Assess the project performance to date? Do you get to have the celebration?

 

5-2 Earned Value Calculation 

Project Schedule and

Budget

Data Provided:

Task

Duration (days)

Predecessor(s)

BudgetA2

—

$1,600

B5—

$4,000

C3A

$14,050

D4B

$5,800

E6B

$12,000

F4

C,D

$5,200

G3E

$3,900

 

Project Totals:

$46,550

Status of the project at the end of day 6: 

Task

% Complete

Actual Cost of Work Performed

A

100%

$1,800

B100%

$4,500

C

90%

$13,500

D

10%

$500

E0%$0F0%$0G0%$0

Project Network Diagram 

Critical Path (CP) = B – E – days 

Tasks  Duration (Days)   

1.  Calculate the schedule variance for each task and the total project.  

2.  Calculate the cost variance for each task and the total project.   

3.  What is your assessment of the project at this time?