Use CR to determine “control”. Investigate separate ratios within CR calculation

ID: 388220 • Letter: U

Question

Use CR to determine “control”. Investigate separate ratios within CR calculation to determine which factors (schedule and/or budget) are in control or out of control.

9. Determine if the following test marketing project at week 6 is in control. If not, what is out of control? If it is in control are both budget and schedule in control? Dura- Bud- Actual % Prede- tion get, Cost, Com- cessors (weeks) pleted Activity a: Build items b: Supply storesism 300 400 100 200 180 100 250 300 100 2 c: Create ad program d: Schedule adsa e: Check sale 600400 b 20 400 200 20 results

Explanation / Answer

Before answering this, let us understand basis

Activity

Budget (PV)

Actual cost (AC)

% completion

SPI

CPI

build item

300

400

1.333333

supply store

200

180

0.9

create ad program

250

300

1.2

schedule ad

600

400

0.2

0.133333

0.2

0.026667

check sales result

400

200

0.2

0.1

0.2

0.02

In the above table Build item, create ad program have CR greater than 1 which means they are managed well. In both the cases, SPI & CPI are greater than one which means it is within the cost and more work is done.

In the above table supply store, schedule ads and check sales results have CR less than one which means they are poorly managed. Supply store has SPI less than one but CPI equal to one which means less work is done and it is within the cost. Schedule ads and check sales result have both SPI and CPI less than one which means less work is done at high cost