It is important to monitor and control project schedule and cost. Earned Value Management (EVM) is a method used to identify the project performance by measuring the project performance and relate it with the project goals. Assume that you have completed the first three (3) months of the above project. Given that the value of Budget at Completion (BAC) was $550,000, while other information provided are as follows: Planned Value (PV) = $ 440,000 Earned Value (EV) = $ 380,000 Actual Cost = $ 330,000 (i) Based on the information provided above, calculate the cost variance, schedule variance, cost performance index (CPI) and schedule performance index (SPI) for the project. (Show calculation). (ii) Explain the status of the project and its relationship between schedule and cost. Justify your answer.
It is important to monitor and control project schedule and cost. Earned Value Management (EVM) is a method used to identify the project performance by measuring the project performance and relate it with the project goals. Assume that you have completed the first three (3) months of the above project. Given that the value of Budget at Completion (BAC) was $550,000, while other information provided are as follows: Planned Value (PV) = $ 440,000 Earned Value (EV) = $ 380,000 Actual Cost = $ 330,000 (i) Based on the information provided above, calculate the cost variance, schedule variance, cost performance index (CPI) and schedule performance index (SPI) for the project. (Show calculation). (ii) Explain the status of the project and its relationship between schedule and cost. Justify your answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(c) It is important to monitor and control project schedule and cost. Earned Value
Management (EVM) is a method used to identify the project performance by
measuring the project performance and relate it with the project goals. Assume that
you have completed the first three (3) months of the above project. Given that the
value of Budget at Completion (BAC) was $550,000, while other information provided
are as follows:
Planned Value (PV) = $ 440,000
Earned Value (EV) = $ 380,000
Actual Cost = $ 330,000
(i) Based on the information provided above, calculate the cost variance, schedule
variance, cost performance index (CPI) and schedule performance index (SPI)
for the project. (Show calculation).
(ii) Explain the status of the project and its relationship between schedule and cost.
Justify your answer.
Transcribed Image Text:Table 1: Business Analysis System estimated work duration
Optimistic
Most Likely
Pessimistic
Expected
Task ID
Predesessors
Time
Time
Time
Time
A
10
22
22
20
В
20
20
20
20
4
10
16
10
D
A
2
14
32
15
E
B,C
8
8
20
10
B,C
8
14
20
14
G
B,C
4
4
4
4
D
2
12
16
11
H
16
38
18
J
E,F
2
8
14
As the Project Manager, you are required to analyze the project time and cost, by answering
the following questions:
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