Earned value analysis is the project management tool that is used to measure project progress. You are a project manager in company XYZ that responsible to handling the packaging machine project with the total cost budgeting is RM100,000. There are including RM24,000 (Design), RM60,000 (build) and RM16,000 (install & test). The information regarding on the project progress development in weeks 8 as shown in Table 2 below: No Type Cumulative Budgeted Cost (CBC) 2 Cumulative Actual Cost (CAC) 3 Cumulative Earned Value (CEV) 1 TOTAL RM 64,000 i. ii. iii. iv. 68,000 54,000 100,000 Percentage 64.0 68.0 54.0 100.0 a) Based on question 2(a), calculate and elaborate the various of indicators of cost performance for this project based on the respective below: Cost performance Index (CPI) [hint: CEV/CAC] Cost variance (VC) [hint: CEV-CAC] Forecasted cost of completion (FCAC) with action taken [hint: TBC/CPI] Forecasted cost of completion (FCAC) without any action taken [hint: CAC + [TBC-CEV]

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Earned value analysis is the project management tool that is used to measure project progress.
You are a project manager in company XYZ that responsible to handling the packaging machine
project with the total cost budgeting is RM100,000. There are including RM24,000 (Design),
RM60,000 (build) and RM16,000 (install & test). The information regarding on the project
progress development in weeks 8 as shown in Table 2 below:
No
Type
Cumulative Budgeted Cost (CBC)
2 Cumulative Actual Cost (CAC)
Cumulative Earned Value (CEV)
1
3
TOTAL
RM
i.
ii.
iii.
iv.
64,000
68,000
54,000
100,000
Percentage
64.0
Cost performance Index (CPI) [hint: CEV/CAC]
Cost variance (VC) [hint: CEV-CAC]
68.0
54.0
a) Based on question 2(a), calculate and elaborate the various of indicators of cost
performance for this project based on the respective below:
100.0
Forecasted cost of completion (FCAC) with action taken [hint: TBC/CPI]
Forecasted cost of completion (FCAC) without any action taken
[hint: CAC + [TBC-CEV]
Transcribed Image Text:Earned value analysis is the project management tool that is used to measure project progress. You are a project manager in company XYZ that responsible to handling the packaging machine project with the total cost budgeting is RM100,000. There are including RM24,000 (Design), RM60,000 (build) and RM16,000 (install & test). The information regarding on the project progress development in weeks 8 as shown in Table 2 below: No Type Cumulative Budgeted Cost (CBC) 2 Cumulative Actual Cost (CAC) Cumulative Earned Value (CEV) 1 3 TOTAL RM i. ii. iii. iv. 64,000 68,000 54,000 100,000 Percentage 64.0 Cost performance Index (CPI) [hint: CEV/CAC] Cost variance (VC) [hint: CEV-CAC] 68.0 54.0 a) Based on question 2(a), calculate and elaborate the various of indicators of cost performance for this project based on the respective below: 100.0 Forecasted cost of completion (FCAC) with action taken [hint: TBC/CPI] Forecasted cost of completion (FCAC) without any action taken [hint: CAC + [TBC-CEV]
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