1) Given the following information for a one-year project, answer the following questions. 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=$22,000 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? Show your calculations. b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain. c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
please help, project management, I need part E and 2
please help, project management
1) Given the following information for a one-year project, answer the following questions. 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=$22,000 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? Show your calculations.
b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain.
c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain.
d) Use the SPI to estimate how long it will take to finish this project.
e) Sketch the earned value chart for this project.
2) Write a one-page summary explaining how is project cost management different when using an Agile approach?
here is what i have
1) a)
The formula for the Cost variance is Earned value minus actual costs
Cost variance=20000-25000
Cost variance=-5000
The formula for the Schedule variance is Earned value minus the planned value
Schedule variance=20000-22000
Schedule variance=-2000
Cost performance index= dividing the Earned value by actual costs
Cost performance index=20000/25000
Cost performance index=0.80
Schedule performance index=dividing the Earned value by the planned value
Schedule performance index=20000/22000
Schedule performance index=0.91
1) b)
Here, I would look at the cost variance value, as cost variance value has a negative sign, so, I could conclude that This project is over-budgeted. Again, the Cost performance index is 0.80, so, I could conclude that we are actually getting $80 worth of work out of every 100 dollars that we have spent on this project, as this Cost performance index is less than one, so, It gives us a bad indication.
Again, Schedule variance has also a negative sign, so, we could conclude that Project is behind the schedule and the schedule performance index is 0.91, so, we could conclude that we are only progressing at 91 percent of the rate that we have planned.
1) c)
Here, Given BAC value is 120000 and CPI is calculated above, and CPI is 0.80
The estimate at completion for this project would be =BAC/CPI
The estimate at completion for this project would be =120000/0.80
The estimate at completion for this project would be =150000
Here, from the above calculation, I could see that the EAC value is higher than the BAC value, so, I could conclude that this project is performing worse than planned.
1)d)
Here, SPI value=0.91, Ideally, Project should take 12 months to complete, In reality, the project would take 12 Months/SPI=12/0.91=13.186 or almost 13 months to complete.
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