Wk 3 Problem

Earned Value Problems
Of the three problems below, choose and solve one problem. Show your work. Along with your answer, define each term and explain the significance (meaning) of the solution.

1. During a project, Earned Value Analysis is performed and gives the following numbers:
EV: 523,000; PV: 623,000; AC: 643,000.
Which results are correct?
A. CV: +120,000; SV: +100,000
B. CV: +100,000; SV: +120,000
C. CV: -100,000; SV: -120,000
D. CV: -120,000; SV: -100,000

2. You found the following Earned Value Analysis information for a recently closed out project:
SPI = 0.7, CPI = 1.0
A. The project has been cancelled while it was executed. At that time the project was behind schedule and on budget.
B. The project’s deliverables have all been finished. The project came in ahead of schedule but on budget.
C. The project’s deliverables have all been finished. The project came in on schedule but over budget.

3.You are assigned as the project manager to a project which had a one-time cost variance in the past caused by unexpected rework which has meanwhile been finished.
You perform Earned Value Analysis and find the following results:
EV: 250,000; PV: 200,000; AC 275,000; BAC is 500,000.
What is right?
A. EAC = 550,000
B. EAC = 525,000
C. EAC = 500,000
D. EAC = 425,000

Required Readings
Read the following chapters in Cost and Value Management in Projects:

Chapter 5: Project Cost Control

Read the following journal articles to assist you in completing this week’s written assignment:

Visitacion, M. (2007, October). Exemplary EVM at Lawrence Livermore Labs. Contract Management, 47(10), 75-77. Retrieved from ProQuest Database. 
Visitacion, M. (2007, September). Debunking Commonly Held EVM Myths. Contract Management, 47(9), 51-52. Retrieved from ProQuest Database. 

Required Website
Go to the NASA EVM Tutorial (Links to an external site.), which is an online reference for the theory and application of Earned Value, coinciding with the discussion and written assignment for the week.