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Asignment Chapter 10

The document contains a 10 question multiple choice assignment on project monitoring concepts and 6 project monitoring calculation problems. It provides the student's answers to the multiple choice portion and shows their work for solving the 6 problems. The problems calculate schedule and cost variances, performance indexes, and time variances based on given earned value, actual cost, planned value, and time data for projects. The student's solutions analyze whether the variances indicate the projects are on or over budget and on or behind schedule.

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Thi Khanh Linh Pham
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48 views

Asignment Chapter 10

The document contains a 10 question multiple choice assignment on project monitoring concepts and 6 project monitoring calculation problems. It provides the student's answers to the multiple choice portion and shows their work for solving the 6 problems. The problems calculate schedule and cost variances, performance indexes, and time variances based on given earned value, actual cost, planned value, and time data for projects. The student's solutions analyze whether the variances indicate the projects are on or over budget and on or behind schedule.

Uploaded by

Thi Khanh Linh Pham
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Full name: Phạm Thị Khánh Linh

ID : BABAWE13276

Assignment for chapter 10 Project Monitoring


I. Multichoice:
1. Monitoring, as an activity, should be kept distinct from __________, which uses data supplied
by monitoring to bring actual performance into approximate congruence with planned
performance.
a) recording
b) controlling
c) collecting
d) reporting

2. According to the authors, the key items to be planned, monitored, and controlled are
__________.
a) time, cost, and financial stability
b) time, quality, performance, and customer satisfaction
c) schedule, budget, and feasibility
d) time, cost, and performance

3. The first step in setting up a monitoring system is to __________.


a) collect existing data to see what data is relevant and available
b) collect every available piece of information so it can be analyzed
c) use whatever information is available
d) identify the key factors to be controlled

4. __________ may not be constant over the project's life because they can be changed by the
parent organization, the client, or the community.
a) Performance criteria
b) Data collection procedures
c) Standards
d) Project goals

5. In earned value analysis, the 50-50 rule assumes that __________.


a) 50 percent is earned when the task is half done and 50 percent is earned at completion
b) 50 percent is earned when the task begins and 50 percent is earned at completion
c) 50 percent is earned when the task begins and 50 percent is earned at the halfway stage
d) 50 percent is earned when the project is planned and 50 percent is earned when the project is
over

6. In earned value analysis, if the cost variance is (-$10,000), __________.


a) the cost variance is favorable
b) the cost variance is unfavorable

1
c) the scheduled variance is favorable
d) the scheduled cost avoidance is unfavorable

7. If CPI = 1.05, then __________ is favorable.


a) time variance
b) schedule variance
c) cost variance
d) performance variance

8. ETC + AC = __________.
a) BAC
b) EAC
c) SPI
d) CPI

9. __________ is when individuals are overwhelmed with too many reports, too much detail, and
too much data.
a) Information overload
b) PMIS verification
c) Project isolation
d) Computer paralysis

10. Reports for __________ have a need for detailed information about individual tasks and the
factors affecting such tasks.
a) top executives
b) lower-level personnel
c) all the stakeholders
d) project managers

ANSWER : 1. B 2.D 3.D 4.B 5.B 6.B 7.C 8.B 9.A


10.B
II. Problems: 6
P11.2, P11.3, P11.4, P11.5, P11.6, P11.7

_____o0o ____
P10.2
Ost schedule variace = budgeted cost- actual cost = 42000-34000= $8000
Schedule vairance = budgeted cost of work performance - budget cost of work scheduled =
39000- 42,000= (-3000)
Cost performance index (CPI)= earned value/ actual cost =39000/34000= 1.147

2
Scheduled performance index (SPI) = erned value / planned value = 39,000/42000=0. 9285
P.10.3
AC = $78,000
PV = $84,000
EV = $81,000
AT = 70 days
Cost Variance = EV – AC = $81000 - $78000
Cost Variance = $3,000
Schedule Variance = EV – PV = $81,000 - $84,000
Schedule Variance = -$3000
CPI = EV/AC = 1.03
SPI = EV/PV = 0.96
Cost Schedule Index = EV2/(AC)(PV) = ($81,000)2 /($78,000)($84,000)
Cost Schedule Index = 6,561,000,000 / 6,552,000,000
Cost Schedule Index = 1.001
Time Variance = ST – AT = (AT)(CSI) – AT = (70)(1.001) – 70
Time Variance = 0.07 days
This is good. The project is a little under budget (CPI = 1.03) and a little behind
schedule (SPI = 0.96). In theory, the PM could spend a little extra and make up that
minor schedule variance. In our PM shop, CPI and SPI between 0.95 and 1.05 is
‘green’ so there’s no problem here.
P10.4
Actual cost or AC = $350,000,
Planned cost or PV = $475,000,
Value completed or earned value (EV) = $300,000
Cost Variance (CV) = 300,000 – 350,000
= -50,000
Schedule Variance(SV) = 300,000 – 475,000

3
= -175,000
Cost Performance Index (CPI) = Earned value/Actual cost
= 300,000/350,000
= 0.8571
Schedule Performance Index (SPI) = Earned value/Planned Cost
= 300,000/475,000
= 0.6316
Scheduled Time Work Performed (STWP)
Time ( t) = Schedule Variance/Slope of Planned costs = -175,000/ (475,000/17)
= - 6.2631months
Time Difference = 17- 6.2631 = 10.7369
Time Variance = 10.7369/17 = 0.6316
10.5
AC = $23,000
PV = $17,000
EV = $20,000
AT = 10 months
Cost Variance = EV – AC = $20,000 - $23,000
Cost Variance = -$3,000
Schedule Variance = EV – PV = $20,000 - $17,000
Schedule Variance = $3,000
Cost Performance Index = EV/AC = $20,000/$23,000 = 0.87
Schedule Performance Index = EV/PV = $20,000/$17,000 = 1.18
Cost Schedule Index = (CPI)(SPI) = 0.87 * 1.18
Cost Schedule Index = 1.027
This one is a mixed bag. The PM has overspent (CPI=.87) and is over his earned value
projection but is way ahead of schedule (SPI =1.18).
10.6

4
10.7
Schedule Variance = Earned Value - Planned Value = 12000*70% - 12000 = -$3600

5
Cost Variance = Earned Value - Actual Cost = 12000*70% - 10000 = -$1600
No, the client will not be please as the variances indicate "Overbudget" for the client. At the
same time, the actual value derived is less than the valued planned

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