question archive Problem 3) The following project is at the end of its 6th week
Problem 3) The following project is at the end of its 6th week
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Problem 3) The following project is at the end of its 6th week. Find the cost and schedule variances. Also find the CPI and SPI. Then find the critical ratio of the project using earned value calculations. Finally, calculate the EAC for the project by at least two different methods.
|
Activity |
Predecessor |
Duration(wks) |
Budget($) |
Actual cost($) |
%complete |
|
A |
- |
2 |
600 |
400 |
100 |
|
B |
- |
3 |
150 |
180 |
100 |
|
C |
A |
2 |
250 |
300 |
100 |
|
D |
A |
5 |
500 |
400 |
20 |
|
e |
B, c |
4 |
400 |
200 |
20 |
a. CV =
b. SV =
c. CPI =
d. SPI=
e. CR=
f. EAC=
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a. CV = -300
b. SV = -420
c. CPI = 0.7973
d. SPI= 0.7375
e. CR= 0.5880
f. EAC = 2383
= 2200
From the table given in the question we can find: planned value , earned value and actual cost which will help us in the calculations below.
Planned value (PV) = actual budget = 1600
Earned value (EV) = Actual percentage x project budget
= (100% x 600)+(100% x 150)+(100% x 250)+(20% x 500)+(20% x 400) = 1180
Actual cost (AC) = 1480
a) CV = earned value - actual
= 1180 - 1480
=-300
b) SV = earned value - planned value
= 1180 - 1600
= -420
c) CPI = Earned value / Actual value
= 1180/1480
= 0.7973
d) SPI = Earned value /Planned value
= 1180/1600
=0.7375
e) CR = CPI*SPI
= 0.7973 x 0.7375
= 0.5880
f) EAC can be found by the use of either of the following formulas
EAC = total budget / CPI
= 1900/0.7973
= 2383
EAC = Actual budget +(total budget - earned value)
= 1480+ (1900- 1180)
= 2200
