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Transcript of PM592_wk_5
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7/31/2019 PM592_wk_5
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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 isnt even started! This information gives you the final data you need to
apply Earned Value and develop an objective analysis.
1. What are the PV, EV, and AC for the project at the end of month 4?
PV=BCWP/BCWS 1.78/4=.445
EV=
AC= 1475/4= $368.75
2. What are the SV, CV, SPI, and CPI for the project?
SV= BCWP-BCWS
CV=BCWP-ACWP
-1475overrun is negative
SPI=BCWP/BCWS
4
CPI=BCWP/ACWP
3.86
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3. Assess the project performance to date? Do you get to have the celebration?
The Schedule Variance is not negative. This portion is on track. However, the CV has a overrun
up the good work emails and communication. I believe in celebrating until the job of all tasks are
completed, sealed and delivered.
5-2 Earned Value Calculation
Project Schedule and Budget Data Provided:
Task Duration (days) Predecessor(s) Budget
A 2 --- $1,600
B 5 --- $4,000
C 3 A $14,050
D 4 B $5,800
E 6 B $12,000
F 4 C,D $5,200
G 3 E $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
B 100% $4,500
C 90% $13,500
D 10% $500
E 0% $0
F 0% $0
G 0% $0
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Project Network Diagram
Critical Path (CP) = B E G = 14 days
Tasks Duration (Days)
A A A
B B B B B B
C C C C
D D D D D
E E E E E E E
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F F F F
F
G G
G G
0 1 2 3 4 5 6 7 8 9 10 11 12
13 14 15 16
1. Calculate the schedule variance for each task and the total project.
a- 0
b- 0
c- 9132.50
d- -870
e- -
f- -
g- -
Total 8262.50
2. Calculate the cost variance for each task and the total project.
a. -200
b. -500
c. -855
d. 80
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e.
f.
g.
Total -1475
2. What is your assessment of the project at this time?
Overall the project is not completed. Three of the tasks has bot even been started and the Task D only
10% of this task has been completed. 30% of the project is completed and 70% needs to be completed.
So the project needs to be placed back on task and need to be monitored daily to stay within the
schedule restraints.