Data for a project is given below: Activity Duration Precedence Budget or months
ID: 339372 • Letter: D
Question
Data for a project is given below: Activity Duration Precedence Budget or months 3.00 1.00 2.00 3.00 2.00 1.00 1.00 Percen Completed 1.00 0.00 1.00 0.50 0.00 0.00 0.00 Cost 15000 5000 10000 21000 32000 5000 5500 B,C The project started on June 1st. The project has a planned duration of 7 months Data below are planned cost and actual cost (spent) from June to November: Actual Month June July Aug Sept Oct Nov Planned Cost 5000 5000 5000 5000 12000 23000 8000 8000 5000 5000 12000 12000 a) Compute cost and schedule variances. (4 points b) Compute critical ratio. (5 points) c) Based on current cost performance level, what is the estimated cost in completing the project? (3 points) d) Based on current schedule performance level, how much more time (in months) is needed to complete the project? (3 points)Explanation / Answer
Total Project PV = Sum of planned cost from June to November = 55000
Total Project Actual Cost, AC = 50000
Project Earned value, EV = cost of work completed till now = 100%* Budget of A + 100%* Budget of C + 50%*Budget of D = 15000 + 10000 + 0.5*21000 = 35500
a) Cost Variance, CV = EV-AC = 35500 - 50000 = -14500
Schedule Variance , SV = EV-PV = 35500 - 55000 = -19500
b) Schedule performance Indicator, SPI = EV/PV = 35500/ 55000 = 0.65
Cost performance Indicator, CPI = EV/AC = 35500/50000 = 0.71
c) Based on Current cost performance indicator, Estimate at completion , EAC = BAC/CPI
BAC is total project budget = 15000 + 5000+10000 +21000 + 32000 + 5000 + 5500 = 93500
EAC = 93500 / 0.71 = 131690
d) Based on current schedule performance , Estimate time at completion = Project Duration /SPI = 7/0.65 = 10.85 months
So Additional More time required from planned month = 10.85-7 = 3.85 months
Month Plannned Cost Actual Cost June 5000 8000 July 5000 8000 August 5000 5000 September 5000 5000 October 12000 12000 November 23000 12000 Total 55000 50000Related Questions
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