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Part 2 Homework Assignment

Instructions: Answer the questions provided below. Please save your

answers in a either a MS Word document (.doc) or rich text file (.rtf) format.
Please name your file “HW2-Your Name” Then upload and submit your file
into WebCT through the assignment tool.
1. Review the network diagram for the project associated with
Question 12 on page 187 of Successful Project Management 4th
Ed.
Note: If you are using the 3rd edition of the textbook, the same network
diagram is located on page 178.
a) Calculate the ES, EF, LS, and LF times and the slack for each
activity in the figure below and identify the critical path for the
project and complete the chart below.Helpful Hint:
Do not attempt to perform these calculations in your head. Draw out
the network diagram on a piece of scratch paper and fill in the various
finish times in their proper places. Then transpose your answers to the
chart below.

Estimate Earliest Earliest Latest Latest Total

Activity d Start Finish Start Finish Slack
Duration (ES) (EF) (LS) (LF) (TS)
A 3 0 3 2 5 2
B 5 0 5 -2 3 -2

C 18 3 24 5 23 2

D 7 5 12 3 10 -2

E 10 5 15 9 15 0

F 5 12 17 10 15 -2

G 8 17 25 15 23 -2

H 2 25 27 23 25 -2

I 9 17 26 16 25 1
J 5 27 32 25 30 -2

b) Can the project be completed in 30 weeks?

Answer: No, Must eliminate -2 days of slack

c) Identify the critical path for this project. If no critical path

 exists using the definition of TS ≤ 0, identify the longest path
of the project.

Answer: B-D-F-G-H-J

2. Refer to the same network diagram that was used in the previous
question (Question 12 from page 187 of your textbook). Assume
that task A actually finished at 5 weeks and task B actually
finished at 5 weeks. Recalculate the expected project completion
time for the project. Which activities would you focus on in order
to get the project back on schedule?

Helpful Hint:Remember that actual finish times (AF) are based in reality
and cannot be created mathematically. You should only have AF values
for those activities that have already been completed.

Complete this table [5 points]

Activity ED ES EF LS LF TS AF
A 3 0 5 2 5 0 5
B 5 0 5 -2 3 -2 5

C 18 5 23 5 23 0 -

D 7 5 12 3 10 -2 -

E 10 5 15 5 15 0 -

F 5 12 17 10 15 -2 -

G 8 17 25 15 23 -2 -

H 2 25 27 23 25 -2 -

I 9 17 26 16 25 -1 -

J 5 27 33 25 30 -3 -

Is the project on schedule? If not, which activities would you focus

your attention on, and why?

3. Assume that an activity has a normal time of 20 weeks, a normal

cost of $72,000, a crash time of 16 weeks, and a crash cost of
$100,000. By how many weeks, at most, can this activity’s
duration be reduced? What is the cost per week to accelerate this
activity? Show your calculations.

Answer:
 20 weeks - 16 weeks = 4 weeks that this activity’s duration can be
reduced by

$100,000 - $72,000 = $28,000 for 4 weeks reduced time

$28,000 / 4 weeks = $7,000 per week

4. What does it mean when a cost performance index (CPI) value is

less than 1.0? What does it mean if it equal or greater than 1.0?

Answer:

A CPI value of less than 1.0 means that for every dollar actually
expended, less than one dollar of earned value is received.

A CPI of greater than 1.0 means that for every dollar expended, your
earned value is equal to or greater than that original dollar spent.
Helpful Hint:Shaded areas represent cells that you need to fill in
values to complete the table.

Table 1: CBC
Week
T
B 1
C 1 2 3 4 5 6 7 8 9 0
$
3 1
Task 1 0 0 15 5
$
7 1 2 1 1
Task 2 0 10 10 0 0 0 0
$
4 2
Task 3 0 5 5 5 5
$ 2
3 0
Task 4 0 5 5
$
1 2
7 1 1 2 1 3 1 0
Total 0 0 25 15 0 5 5 5 0 5
1 1 1 1 1
1 3 5 6 8 0 3 4 5 7
Cumulative 0 5 0 0 5 0 5 5 0 0

Table 2: Actual Costs

Week
1 2 3 4 5 6
1 1
Task 1 0 6 8
1 2 1
Task 2 0 10 12 4 2
Task 3 5 5

Task 4
1 2 2 1
Total 0 6 18 12 9 7
Cumulative

Table 3: Percent
Complete
Week
1 2 3 4 5 6
3 8 10
0 0 0
Task 1 % % %
1 5 6
0 25 35 5 5
Task 2 % % % % %
1 2
0 0
Task 3 % %
Task 4

Table 4: Earned Value(All values in

thousands of dollars)
Week
1 2 3 4 5 6
Task 1 9 24 30 30 30 30
Task 2 7 17.5 24.5 38.5 45.5
8
Task 3 4
Task 4
Total 9 31 47.5 54.5 72.5 83.5
5. Refer to the Tables 1-4 to answer the following questions.

a) Complete the Tables 1 & 2 above to show the cumulative

budgeted and actual costs for each week.

Answer:

b) What is the cumulative budgeted cost at the end of week 6?

Answer: $170

c) What is the cumulative actual cost at the end of week 6? How

does this compare with the CBC?

Answer: 112, This number is well below the budgeted cost.

d)
e) What is the cumulative earned value (CEV) of the project at the
end of week 6? How does this compare with cumulative actual
costs (CAC)?

Answer:

f) What is the CPI at the end of week 6?

formula) CPI = Answer CPI = Budgeted cost of work performed

divided by Actual cost of work performed

(calculation) = Answer CPI= 1.51785714

g) What is the CV? To receive full credit, you must show your
formula and your calculations.

(formula) CV = Answer

(calculation) = Answer

h) Calculate the FCAC using the first two methods described in

the chapter. Show your formulas and your calculations.

Method 1 – Assuming the same rate of efficiency.

(formula) FCAC = Answer

(calculation) = Answer

Method 2 – Perform the remainder of the work according to

budget.

(formula) FCAC = Answer

(calculation) = Answer