Question 1: 10 points Boyd Cycle is the project manager of a small project that

Question

Question 1: 10 points Boyd Cycle is the project manager of a small project that consists of seven tasks. After careful and extensive planning, Boyd and his project staff agreed on a proposed project schedule and started the project six weeks ago. The original schedule as well as the current status of the project (at the beginning of the seventh week) is indicated in the following Gantt chart. As indicated, the start of task C was delayed due to the unexpected delay in completing task A; this, in turn, resulted in delaying the start of task C as well as the scheduled start of tasks E and G Today i Delay due to task. A delay Scheduled critical task Scheduled noncritical task Planned but not used tsed but not planned Time 819T1011 121 13 14 15 In their original project plan, Boyd and his staff had estimated the following task durations and (to- tal) direct costs for each task; they assumed that direct labor efforts spent on each task would be approximately uniform for the estimated lifespan of each task. Task Duration Planned Value (wks) $2,400 $2,800 $1,150 $825 $1,200 $1,050 $270

Explanation / Answer

1.

Cost variance = EV - AC = $5,916 - $6,050 = -$134 (cost overrun)
Schedule variance = EV - PV = $5,916 - $5,897 = $19 (ahead of schedule)

2.

A negative cost variance indicates a cost overrun while a positive schedule variance indicates that the project is ahead of schedule. If we would have used the critical path as our decision principle, we concluded that the project is behind the schedule (i.e. opposite conclusion than the earned value principle) by 3 days due to A, as a critical activity, got delayed by 3 days.

3.

Fixed formula (25/75) rule: 25% is earned when an activity starts and the balance 75% is earned on completion.

Cost performance index = EV / AC = $5,694 / $6,050 = 0.94 (cost overrun)
Schedule performance index = EV / PV = $5,694 / $5,897 = 0.97 (delayed)

This shows that the project is both overbudget and delayed behind shedule as both the indices are less than 1.0.

Entire Project Up to week 6 Task Duration
(wks) Planned
Value Duration
(wks) Planned
Value %
Complete Earned
Value Actual
Cost A 4 $2,400 4 $2,400.00 100% $2,400 $2,550 B 7 $2,800 6 $2,400.00 100% $2,800 $2,750 C 3 $1,150 2 $766.67 30% $345 $250 D 5 $825 2 $330.00 45% $371 $500 E 4 $1,200 0 $0.00 0% $0 $0 F 3 $1,050 0 $0.00 0% $0 $0 G 2 $270 0 $0.00 0% $0 $0 Totals $9,695 $5,897 $5,916 $6,050

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.