Problems 5-1 through 5-2 (Graded) 5-1 Earned Value Calculation You are 4 months into a 6 month project.

The project is linear, which means that the progress and spending occurs at a constant rate. Our crack project team of highly skilled associates has worked diligently and put in extra hours to keep the project going. Our accounting department has provided the following data at the end of month 4: Actual cost to date = $88,800 Planned expenditures to date = $101,000 The CFO is excited and has sent you an email congratulating you for being 12.07% under budget. However, is it really time to hold a team celebration? That would be fun but your project manager mentality kicks in. Those numbers look good but how are we really doing? To understand the true project performance, we need to apply earned value techniques. The missing piece we need is Earned Value (i.e. what we have actually accomplished so far). You meet with your team and find that only 6 of the 7 tasks scheduled to be complete by the end of month 4 have actually been completed. Task 7 isnt even started! This information gives you the final data you need to apply Earned Value and develop an objective analysis. 1. What are the PV, EV, and AC for the project at the end of month 4?

PV=BCWP/BCWS 1.78/4=.445 EV= AC= 1475/4= $368.75 2. What are the SV, CV, SPI, and CPI for the project?

SV= BCWP-BCWS

CV=BCWP-ACWP -1475overrun is negative SPI=BCWP/BCWS 4 CPI=BCWP/ACWP 3.86

3.

Assess the project performance to date? Do you get to have the celebration? The Schedule Variance is not negative. This portion is on track. However, the CV has a overrun

up the good work emails and communication. I believe in celebrating until the job of all tasks are completed, sealed and delivered. 5-2 Earned Value Calculation

Project Schedule and Budget Data Provided: Task A B C D E F G Duration (days) Predecessor(s) Budget 2 5 3 4 6 4 3 ----A B B C,D E $1,600 $4,000 $14,050 $5,800 $12,000 $5,200 $3,900

Project Totals: $46,550

Status of the project at the end of day 6: Task A B C D E F G % Complete 100% 100% 90% 10% 0% 0% 0% $1,800 $4,500 $13,500 $500 $0 $0 $0 Actual Cost of Work Performed

Project Network Diagram

Critical Path (CP) = B E G = 14 days

Tasks

Duration (Days)

F F

G G G

1 13

2 14

3 15

4 16

10

11

12

1. abcdefg-

Calculate the schedule variance for each task and the total project. 0 0 9132.50 -870 -

Total 8262.50

2.

Calculate the cost variance for each task and the total project. a. -200 b. -500 c. -855 d. 80

e. f. g. Total -1475 2. What is your assessment of the project at this time?

Overall the project is not completed. Three of the tasks has bot even been started and the Task D only 10% of this task has been completed. 30% of the project is completed and 70% needs to be completed. So the project needs to be placed back on task and need to be monitored daily to stay within the schedule restraints.