As a PMO officer, you are asked to do an evaluation for a natural gas pipeline right in the middle of the project’s planned schedule. There are concerns that it will go over budget and schedule because 40 million dollars has been spent in the project so far. According to the project charter, the pipeline length is 72 km and must be completed in 6 months, with a budget of 57.6 million AUD. You performed an inspection and find out that installation of 30 km of pipeline has been completed. Using earned value analysis, answer the following questions: A) What is the earned value (EV) for this project at the time of inspection (month 3)? B) What is the planned value (PV) for this project at the time of inspection? C) Calculate the Schedule variance (SV) and the cost variance (CV) at month 4. What do they mean? D) Calculate the Schedule performance index (SPI) and the cost performance index (CPI) at the time of inspection. What do they mean? [ E) According to your analysis, how much is the project going to be over budget? (Calculate the estimate to completion (ETC).) F) As a key part in your report to the management, what is your advice for cutting the expenditure in the rest of the project, in order to finish the project “on-budget”? Determine the “to complete performance index (TCPI)” for this project. What does it mean?
Economics
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As a PMO officer, you are asked to do an evaluation for a natural gas pipeline right in the middle of the project’s planned schedule. There are concerns that it will go over budget and schedule because 40 million dollars has been spent in the project so far. According to the project charter, the pipeline length is 72 km and must be completed in 6 months, with a budget of 57.6 million AUD. You performed an inspection and find out that installation of 30 km of pipeline has been completed.
Using earned value analysis, answer the following questions:
A) What is the earned value (EV) for this project at the time of inspection (month 3)?
B) What is the planned value (PV) for this project at the time of inspection?
C) Calculate the Schedule variance (SV) and the cost variance (CV) at month 4. What do they mean?
D) Calculate the Schedule performance index (SPI) and the cost performance index (
E) According to your analysis, how much is the project going to be over budget? (Calculate the estimate to completion (ETC).)
F) As a key part in your report to the management, what is your advice for cutting the expenditure in the rest of the project, in order to finish the project “on-budget”? Determine the “to complete performance index (TCPI)” for this project. What does it mean?
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