Problem 5-5 Your project to obtain charitable donations is now 50 days into a pl

Question

Problem 5-5 Your project to obtain charitable donations is now 50 days into a planned 60-day project. The project is divided into 3 activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 44 days of the project and to bring in $26,300. Even though we are 50 days into the project, we still see that we have only 88% of this activity complete. The second activity relates to company donations and is scheduled to run for 50 days starting on day 6 and extending through day 56. We estimate that even though we should have (44/50,88% of this activity complete it is actually only 55% complete. This part of the project was scheduled to bring in $151,300 in donations. The final activity s for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $52,600. So far $175,600 has actually been brought in on the project. 0 Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your dollar amounts to the nearest whole number. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost variance Cost performance index

Explanation / Answer

At 50 days

Task 1

Planned Completion = 100%

Actual Completion = 88%

Planned Value = 26300

Earned value = 88%*26300 = 23144

Task2

Planned Completion = 44/50 = 88%

Actual completion = 55%

Budget amount = 151300

Planned Value = 88%*151300 = 133144

Earned value = 55%*151300 = 83215

Task 3

Start date = 50 Complete date = 60

Planned Completion = 1/10 = 10%

Actual completion = 0%

Budget = 52600

Planned value = 10%*52600 = 5260

Earned value = 0%*52600 = 0

Overall Project level

Planned value,PV = sum of all three task planned value = 26300 +133144 +5260 = 164704

Earned value,EV = sum of all three task earned value =23144 + 83215 + 0 = 106359

Actual Cost ,AC = 175600

Schedule variance = EV-PV =106359 - 164704 = $ - 58345

Schedule Performance Index, SPI = EV/PV = 106359/164704 = 0.646

Cost Variance = EV-AC = 106359-175600 = $ -69241

Cost Performance Index = EV/AC = 106359/ 175600 = 0.606

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