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Ch7 Exercise 2 4

The project is two months in and is behind schedule and over budget. The cost variance is -$5000, schedule variance is -$3000, CPI is 0.8, and SPI is 0.87. Using these values, the estimated cost at completion is $150,000, $30,000 over the original budgeted amount. The estimated time to complete the project is 13.8 months, 1.8 months longer than originally planned.

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Tamara Clement
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329 views1 page

Ch7 Exercise 2 4

The project is two months in and is behind schedule and over budget. The cost variance is -$5000, schedule variance is -$3000, CPI is 0.8, and SPI is 0.87. Using these values, the estimated cost at completion is $150,000, $30,000 over the original budgeted amount. The estimated time to complete the project is 13.8 months, 1.8 months longer than originally planned.

Uploaded by

Tamara Clement
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Given the following information for a one-year project, answer the following questions.

Assume
you have actual and earned value data at the end of the second month. Recall that PV is the
planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at
completion.
PV = $23,000
EV = $20,000
AC = $25,000
BAC = $120,000

a. What is the cost variance, schedule variance, cost performance index (CPI), and
schedule performance index (SPI) for the project?
CV is $20,000 - $ 25,000= -$5000 SV is $20,000 - $23,000 = -$3000
CPI is $20,000/$25,000 = .08 SPI is $20,000/$23,000 = .87
b. How is the project progressing? Is it ahead of schedule or behind schedule? Is it
under budget or over budget?
The project is running behind schedule due to a negative SV and is over budget due to a
negative CV.
c.

d.

Use the CPI to calculate the estimate at completion (EAC) for this project. Is the
project performing better or worse than planned?
120,000/.08= $150,000
The project will cost $150,000 to complete instead of the original $120,000 the project is
performing worse than anticipated since it will cost and additional $30,000 to complete

Use the SPI to estimate how long it will take to finish this project.
12/.87= 13.8 Months Projected time to complete 13.8 months

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