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Assignment ID 3423427

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Erick Otieno
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2 views

Assignment ID 3423427

Uploaded by

Erick Otieno
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Project Management Assignment

Students Name

Department of Study

Course Number

Professor Name

Date
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Question 1

Planned Value (PV) = $23,000

Earned Value (EV) = $20,000

Actual Cost (AC) = $20,000

Budget at Completion (BAC) = $120,000.

a. cost variance

Cost Variance = Earned Value (EV)- Actual Cost (AC)

= $20,000 - $20,000

= $0

b. schedule variance

Schedule variance = Earned Value (EV)- Planned Value (PV)

= $20,000 - $23,000

= -$3,000

c. cost performance index (CPI)

Cost performance index (CPI) = Earned Value (EV)/ Actual Cost (AC)

= $20,000/$20,000

= 1.0

= 10%

d. schedule performance index (SPI).


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Schedule performance index (SPI) = Earned Value (EV)/ Planned Value (PV)

= $20,000/$23,000

= 0.8696

= 86.96%

Question 2

Based on the calculated variances and indexes:

a. Cost Variance (CV) is $0: The project is within budget; costs are according to plan.

b. Schedule Variance (SV) is -$3,000: The projectile delay as it only generated $ 3,000 less

in terms of the projected value for the project.

c. Cost Performance Index (CPI) is 1.0: The project is meeting the cost expectations.

d. Schedule Performance Index (SPI) is approximately 0.87: The pace of the project has

slightly lagged the baseline.

In summary, the project is within budget although it is past schedule. The team needs to work on

schedule performance which it needs to revive to a track.

Question 3

EAC = BAC/CPI

= $120,000/1

= $120,000
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Cost-wise, the project is proceeding according to plan because the EAC is in line with the initial

budget. As of right now, there are neither savings nor cost overruns, and the project is on

schedule to execute within budget.

Question 4

Using the Schedule Performance Index (SPI), you can calculate how long the project will take to

complete in the remaining period using the following formula:

1−SPI
= Estimated Time to Completion (ETC) = ∗Original Duration
SPI

Assuming that the project was initially intended to last a year and that the SPI is roughly 0.87,

the computation is as follows:

1−0.87
(ETC) = ∗Original Duration
0.87

0.13
= ∗1
0.87

= 0.149 years

It is projected that the project will take 0.149 years, or 1.79 months, to complete. Thus, if the

current schedule performance continues, the project should be completed in about 1.79 months.
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Question 5

The Planned Value (PV), Earned Value (EV), and Actual Cost (AC) lines in the sketch closely

correspond, suggesting a favorable financial outcome for the project. The PV line shows the

projected cost over time, while the EV points, which show the actual value realized in

accordance with the project plan, follow the PV line closely. The AC line, which represents the

real expenses incurred, is located close to both PV and EV.

This sketch illustrates the project's budget, which indicates that actual financial outlays are

consistent with the projected costs. The intimate connection between PV, EV, and AC points to

efficient cost control. It is difficult to tell if a project is ahead of schedule, behind schedule, or

not without knowledge about the project timeline. However, the near alignment of these lines
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suggests a sound financial performance; therefore, keeping an eye on this trend will be essential

to meeting the project's financial goals.

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