Your company was hired as a subcontractor for a client\'s \"Destiny\" project an

ID: 388193 • Letter: Y

Question

Your company was hired as a subcontractor for a client's "Destiny" project and awarded two main work packages within that project Your company refers to this project internally using the cost code P2 2018". You're given the table below that lists the work packages their cost code, their budget, and their scheduled start day and end day (as agreed upon with the main contractor). The start and end days are measured in working days after the main project's start. So, a start date of 13, for example, means that work on the workpackage should start on work day 13 after the "Destiny" project's start You have "progress to date" and "cost to date" data for both workpackages for the end of day 17 (see table). On day 18 you are asked to fill out the remaining columns, perform an Earned Value Analysis and comment on each of the workpackages' performances as well as on the overall performance of your project "P2_2018 Report Start Finish Cost Budget (Start End Progress Date S) of Date To Date EndP BCWS ACWP Cest Code Name SPI CPI Day. Da)) Day..) P2 2018.1.100 P2 2018.1.200 Total for Project P2 2018 29000 13 100 17 82500 15 20 2090 60 17 A) Finish the table above by filling in all of the missing values. (Use common sense for rounding values. WebLearn will allow for a 5% error margin. Don't include units.) B) For the following schedule questions, enter 0 if your answer is "on track", -1 if your answer is "behind schedule" or enter 1, if your answer is "ahead of schedule . B1: What's your assessment of the Work Package 1? Is Work Package 1 on track (0), behind schedule (-1) or ahead of schedule (1)? Answer: . B2: What's your assessment of the Work Package 2? Is Work Package 2 on track (0), behind schedule (-1) or ahead of schedule (1)? Answer: . B3: What's your assessment of the project P2-2018 overall? Is the project on track (0), behind schedule (-1) or ahead of schedule (1)? Answer: C) For the following budget questions, enter 0 if your answer is on budget", -1 if your answer is "over budget" or enter 1, if your answer is "under budget". . C1: What's your assessment of the Work Package 1? Is Work Package 1 on budget (0), over budget (-1) or under budget (1)? Answer . C2: What's your assessment of the Work Package 2? Is Work Package 2 on budget (0), over budget (-1) or under budget (1)? Answer: . C3: What's your assessment of the project P2_2018 overall? Is the project on budget (0), over budget (-1) or under budget (1)? Answer

Explanation / Answer

B1 .1

B2.1

B3. 1

C1. -1

C2. 1

C3.1

Earned Value Management - also known as Earned Value Analysis (EVA).

Helps to analysing how a project is performing. Based on current performance, further planning is made

Given

BAC-The original budget determined for the task, before the start of the task

Work package 1

Planned duration = 6 days (start of 13 to end of 18)

BAC, budgeted cost = 29000’

Completed days = 5

Work package 2

Planned duration = 6 days (start of 15 to end of 20)

BAC, budgeted cost = 82500

Completed days = 3

Reporting on 17th

BCWP/EV

Earned Value = % of completed work X BAC (Budget at Completion)

Work package 1

Percent completed =100

Earned Value = ( 100/100) * 29000 = 29000

Work package 2

Percent completed =60

Earned Value = ( 60/100) * 82500 = 49500

Project total earned value =29000 + 49500 =78500

BCWS/PV

Planned value (PV) or Budgeted Cost of Work Scheduled (BCWS) is the value of the work that should have been completed in a given time

Planned Value is the value of the work that should have been completed so far (as per the schedule).

Planned Value = (Planned % Complete)* X (BAC)

*% that should have been completed according to plan

Work package 1

For 5 days, (5/6 ) *100 = 83.33% work should have been completed

Planned Value = (83.33/100)* 29000 =24166.67

Work package 2

For 5 days, (3/6 ) *100 = 50% work should have been completed

Planned Value = (50/100)* 82500 =41250

Project total earned value =24166.67 + 41250 =65416.67

ACWP

Actual Cost of Work Performed (ACWP).- or Actual costs- shows the actual costs incurred so far in the project

Work package 1-37700

Work package 2-20790

Project total actual cost = 37700+20790 = 58490

SPI

Schedule Performance Index = (Earned Value) / (Planned Value)

SPI = EV / PV

SPI < 1 =project is behind schedule to-date

SPI < 1 =project is on schedule to-date

SPI > 1 project is ahead of schedule.

Work package 1,SPI-29000/24166.67 =1.2

Work package 2,SPI-49500 /41250 =1.2

Both tasks are ahead of schedule

Project total SPI =78500 / 65416.67 =1.2

Project is ahead of schedule

CPI

Cost Performance Index = (Earned Value) / (Actual Cost)

CPI = EV / AC

CPI less than one -means that money is being spent inefficiently on the task

CPI of one - means that your project is exactly on the budget

CPI value greater than one - money is being spent efficiently on the task

Work package 1,SPI-29000/37700 =0.77, task is inefficient. We are spending more than planned –over budget

Work package 2,SPI-49500 /20790 =2.38, task is efficient. We are spending less than planned. Under budget

Project total CPI =78500/ 58490 =1.34

Project is efficient – under budget

  Name

  Budget

  Start

  Finish

  cost to date

  Progres  to date

  Report date

  BCWP

  BCWS

  ACWP

SPI

CPI

BAC

EV

PV

  EV/PV

  EV/ACWP

  Work package 1

  24166.67

1.2

  0.77

  Work package 2

  41250.00

1.2

  2.38

  Total

  65416.67

1.2

  1.34

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Your company was hired as a subcontractor for a client\'s \"Destiny\" project an

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