70.2K

Verified Solution

Link Copied!

In this assignment, you will have an opportunity to brush up and expand upon your EVM knowledge and skills by applying EVM concepts to a practical problem. THIS ASSIGNMENT REQUIRES A MANUAL ANALYSIS - DO NOT USE MICROSOFT PROJECT.

Problem Background

Your project consists of seven activities shown in the table below, along with: (1) planned start and finish dates; (2) activity budgets; and (3) earned value (EV) accrual rules from you project cost management plan.

Assumptions

Assume a five-day work week including holidays occurring during the work week.

For all activities (except activities 3 and 4), assume the expenditure rate is constant over the duration of the activity, i.e., the amount planned to be spent each week is the same.

1. For activity 3, the planned expenditure profile is shown below:

2.For activity 4, the planned expenditure profile is shown below:

The project sponsor wants you (the PM) to present a project cost and schedule performance assessment using data through Friday, July 29, 2016. You have collected the following information:

For activity 1, three equally-valued gates have been established and all gates are complete as of July 29, 2016.

For activity 3, five milestones have been established with the following values: (1) milestone 1 10%; milestone 20%; milestone 3 15%; milestone 4 -20%; milestone 5 35%. Four of the milestones are complete as of July 29, 2016.

For activity 4, four equally values gates have been established. As of July 29, 2016 none of the gates have been reached but the activity owner estimates 30% of the work required to reach the first gate has been accomplished.

Show all work. Round dollar values to the nearest dollar. Calculate all other variables to three decimal places.

Earned Value Measures

1. Calculate earned value measures for each activity and for the cumulative project as of July 29, 2016; fill in the table below:

Activity	Planned Value (PV)	Earned Value (EV)	Actual Cost (AC)
Activity One			22,000
Activity Two			25,000
Activity Three			40,000
Activity Four			8,000
Activity Five			0
Activity Six			0
Activity Seven			0
Entire Project

Earned Value Performance Measures

2. Calculate earned value performance parameters for each activity and for the cumulative project as of July 29, 2016; fill in the table below:

Activity	Schedule Variance (SV)	Schedule Performance Index (SPI)	Cost Variance (CV)	Cost Performance Index (CPI)
Activity One
Activity Two
Activity Three
Activity Four
Activity Five
Activity Six
Activity Seven
Entire Project

1. Is the project ahead of schedule, on schedule, or behind schedule? What EVM information are you using to make this assessment and why?

2. Is the project over budget, under budget, or on budget? What EVM information are you using to make this assessment and why?

Earned Value Forecasts

1.What is the value of the Cumulative CPI Estimate-at-Completion (EAC)?

2.Using the Mathematical or Overrun to Date Estimate-at Completion, what is the value of the Estimate-to-Complete (ETC)?

3.Using the Cumulative CPI times SPI Estimate-At-Completion, how much more or less money (other than the current budgeted amount) will you need to finish the project?

4.How much would the Cost Performance Index (CPI) have to change in order to complete the project within the original budget?

Activity Planned Start Planned Finish Budget EV Accrual Rule itPlenned ndFinishet Acrul Rule 16-Jun-16 8-Jul-16 25,000 Percent Complete with Gates 211-Jul-165-Aug-1620,000 Fixed Formula 0/100 320-Jun-16 12-Aug-1650,000 Weighted Milestones 425-Ju-1616-Sep-1660,000 Percent Complete with Gates 19-Sep-161 14-0ct-16 30,000 Fixed Formula - 40/60 5 617-Oct-164-Nov-1620,000 Fixed Formula-30/70 7 7-Nov-1618-Nov-1610,000 Fixed Formula-100/0

Answer & Explanation Solved by verified expert

See Answer