NOTE: Do this work on an MS Excel Spreadsheet - Include the Questions. 1 (p. 466
ID: 2744916 • Letter: N
Question
NOTE: Do this work on an MS Excel Spreadsheet - Include the Questions.
1 (p. 466): Find the schedule and cost variances for a project that has an actual cost as month 22 of $540,000, a scheduled cost of $523,000, and an earned value of $535,000.
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2 (p. 466): A sales project at mon5 had an actual cost of $34,000, a planned cost of $42,000, and a value completed of $39,000. Find the cost and schedule variances and the CPI and SPI.
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7 (p. 466): Given an activity in an advertising project whose planned cost was $12,000 but actual cost to date is $10,000 so far and the value completed is only 70 percent, calculate the cost and schedule variances. Will the client be pleased or angry? Explain.
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Optional Reference:
Earned Value Management: http://www.hyperthot.com/pm_cscs.htm
Earned Value, Clear and Simple: http://www.projectsmart.co.uk/docs/earned-value.pdf
Explanation / Answer
Part 1 Cost Variance = EV-AC EV = Earned Value AC = Actual Completion Amount$ Amount $ Variance Remark EV AC EV-AC $535,000 $540,000 $5,000 Adverse Note : Actual Completion = Actual Cost Schedule Variance = EV - PV EV = Earned Value PV = Planned Value Amount$ Amount $ Variance Remark EV PV EV-PV $535,000 $523,000 $12,000 Note : Planned Value = Schedule Value Part 2 Cost Variance = EV-AC EV = Earned Value AC = Actual Completion Amount$ Amount $ Variance Remark EV AC EV-AC $39,000 $34,000 $5,000 Favourable Earned value = Value Completed Schedule Variance = EV - PV EV = Earned Value PV = Planned Value Amount$ Amount $ Variance Remark EV PV EV-PV $39,000 $42,000 3000 Adverse CPI = (BAC-EV)/(BAC-AC) BAC = $42,000 is Planned cost CPI = ($42000-$39000)/($42000-$34000) = 0.375 Part 3 Cost Variance = EV-AC EV = Earned Value AC = Actual Completion Amount$ Amount $ Variance Remark EV AC EV-AC $10,000 $14,286 $4,286 Adverse Earned Value = Actual Completion % of budgeted at completion = 70% of $14286 = $10,000 Budgeted at complition = 10000/.70 = $14,286 Schedule Variance = EV - PV EV = Earned Value PV = Planned Value Amount$ Amount $ Variance Remark EV PV EV-PV $10,000 $12,000 $2,000 Adverse
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