UNIVERSITY OF MANAGEMENT AND TECHNOLOGY MGT 150. Project Management Assignment 3
ID: 413004 • Letter: U
Question
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY MGT 150. Project Management Assignment 3 Following are data reporting progress on a project. Work on all tasks contained in the table is scheduled to be complete as of the day of the report. Budget Begun? Complete? Actual Earned cost Value Task A3,100Yes Task B Task C Task D Yes Yes Yes Yes Yes Yes 0 3,100 4,500 2,250 3,500 4,000 4,000 4,000 Task E 3,500 Task F 2,500 NoNo 1) Using the 50-50 Rule, what is earned value for this project? 2) Using the 0-100 Rule, what is earned value for this project? 3) Note the discrepancy of eaned value figures when using the 50-50 Rule and 0-100 Rule. Why is there a discrepancy? Which Rule should we use? Explain your rationale. 4) Using the 50-50 Rule earned value computation, what is schedule variance for the project as reported? 5) What is the schedule performance index (SPI)? 6) Using the 50-50 Rule earned value computation, what is the cost variance for the project as reported? 7) What is the cost performance index (CPI)? 8) If the total budget for this project is 50,000, use CPI to compute estimate at complete (EAC). 9) Using the earned value information garnered from the above table provide your boss a brief status report on project progress to date. Also, provide projections for future status. 02015 University of Management and TechnologyExplanation / Answer
1) Using the 50-50 rule, 50% credit is earned, when the task is started, and balance 50% is earned, when the task is completed.
Earned Value of the project = 3100+4000+2500+4000*0.5+3500+2500*0 = 15,100
2) Using the 0-100 rule, 0% credit is earned when the task is started, and 100% credit is earned when the task is completed.
Earned Value = 13,100
3) The discrepancy of earned value in the two rules = 15100 - 13100 = 2000
This discrepancy is because task D is started but not completed. So 50% credit is earned for this task using 50-50 rule, but 0% credit is eanred using 0-100 rule.
0-100 gives a highly conservative estimation of the project status, which does not truly reflect the actual status of the project. Therefore, we should use 50-50 rule, because that gives a more reasonable estimate of the actual status of the project.
4) It is given that work on all tasks is scheduled to be complete as of the day of the report, therefore, Planned Value (PV) = 3100+4000+2500+4000+3500+2500 = 19600
Using 50-50 rule Schedule Variance of the project = EV - PV = 15100 - 19600 = -4500
This indicates that the project is behind schedule
5) Schedule Performance Index (SPI) = EV/PV = 15100/19600 = 0.77
SPI is less than 1, indicating project is behind schedule.
6) Cost variance = EV - AC = 15100 - 17350 = -2250
CV is negative, indicating the project is over budget
7) CPI = EV/AC = 15100 / 17350 = 0.87
CPI is less than 1, indicating project is over budget
8) It is given that Budget At Completion (BAC) = 50,000
Using CPI, EAC = BAC/CPI = 50000/0.87 = 57450
9) Brief status report: The project is behind schedule and over budget. It is likely to take more time than estimated and more cost than budgeted. The Estimated cost at completion of the project is 57450, against the budget of 50,000
Task Budget Begun Completed Actual Cost Earned Value A 3,100 Yes Yes 3,100 3100 B 4,000 Yes Yes 4,500 4000 C 2,500 Yes Yes 2,250 2500 D 4,000 Yes No 3,500 2000 E 3,500 Yes Yes 4,000 3500 F 2,500 No No 0 0 Total 19600 17350 15100Related Questions
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