A piece of property is 100 ft by 100 ft. The owner wants to build brick wall aro

ID: 670149 • Letter: A

Question

A piece of property is 100 ft by 100 ft. The owner wants to build brick wall around the property on four sides. The owner asks her son (project manager) to handle the project. The project manager plans to hire one person to build one side of wall a week. According to the project manager’s plan, it will take one person four weeks to finish the project. It’s estimated to cost $500 labor a week and $500 materials to build one side of wall.

Once the project starts, the project manager finds out that it actually takes the person 1.5 weeks and $600 materials to build the first side of wall.

Calculate CPI, SPI, BAC, and EAC of the project. (20 points)

How do you provide a status report to the owner if you are the project manager?

Explanation / Answer

Answer:

Given the size of the property as.

Estimated cost of the labor per week is $500.

Cost of materials to build one side of the wall is $500.

According to estimation, the Project Value by the end of the week given as,

Therefore, the estimated project value is $10000.

Once the project started, by the end of constructing one side of the wall took about 1.5 weeks and the cost of material as $600.

So, the Earned Value to construct one side of wall in one and half week is given as,

Therefore, the earned value by the end of 1.5 weeks is $10000.

The Earned Value for end of week is given as,

Therefore, the earned value by the end of 1 week is $900.

The schedule performance index SPI is given as,

Therefore, SPI = 0.9.

The cost performance index is given as,

Therefore, CPI = 0.9.

The cost of budget at completion of project is BAC is given as,

Therefore, BAC=$40000.

The estimation at completion EAC is given as,

Therefore, EAC=$44444.44.

Project Report:

Report

Calculations

Substitution of values

Final values

Project planned cost by the end of one week:

Material cost + Labor cost

$500 + $500

$10000.00

Project actual cost by the end of one week:

Material cost + labor cost

$400 + $500

$ 900.00

Project delay time:

One and half week * 4 - 1 week *4

1.5*4-1*4

2 weeks

Overhead of Project value:

$500*6 + $600*4

$ 5400.00