HW 7

HW-7
Chapter-13 page 445

Review questions-2, 3, 4, 5
Exercise-5 and 6(You may use Excel for calculations)
2. How does earned value give a clearer picture of project schedule and
cost status than a simple plan versus actual system?
Earned value gives a clearer picture than a simple plan versus actual system
because the earned value system includes the time variable in measuring
progress. Plan versus actual can lead to false conclusions. Earned value
measures what work was accomplished for the money spent.
3. Schedule variance (SV) is in dollars and does not directly represent

time. Why is it still useful?
SV gives a project view of how well all of the scheduled activities are meeting
planned dates. Research shows that after twenty percent of a large project is
complete, SV is a relatively good indicator of schedule performance (even
though it is in dollars or labor hours).
4. How would a project manager use the CPI?
The cost performance index (EV/AC) is a popular index. An index of .60 indicates
that 60 cents of work has been completed for each actual dollar spent. This
would suggest to the project manager that the project will be over budget or big
savings in remaining work will be needed to bring the project in on budget.
5. What are the differences between BAC and EAC?
BAC is the planned budget at completion. EAC is the estimate at completion.

EAC can be calculated two ways. First is simply by formula, which is used in
software programs; the formula applies a performance ratio from past work on
the project to the remaining work for an EAC. A second method uses new cost
estimates that have been made by project participants concerning specific work
packages; these new estimates are then factored into the EAC.
5. The following labor hours data have been collected for a
nanotechnology project for periods 1 through 6. Compute the SV, CV,
SPI, and CPI for each period. Plot the EV and the AC on the summary
graph provided (or a similar one). Plot the SPI, CPI and PCIB on the
index graph provided (or a similar one). What is your assessment of
the project at the end of period 6?
After 6 time periods the project is roughly 66% complete and so far work on the
project has taken 1,600 hours less work than planned. There is 400 hours worth
of work on Activity 4 which was supposed to have been done that has not done.
Since Activity 4 is on the critical path, the project is behind schedule. If schedule
is the number priority, the project manager may want to consider investing some
of the savings on accelerating critical activities.
Status Report: Ending Period 1

Task
1
%
Complete
EV
AC
PV
CV
SV
50%
1000
500
1000
+500
1000
500
1000
+500
Cumulative Totals

Task
1
%
Complete
EV
AC
PV
CV
SV
Finished
2000
1500
2000
+500
2000
1500
2000
+500
Cumulative Totals

Task
%
Complete
EV
AC
PV
CV
SV
Finished
2000
1500
2000
+500
0%
1600
-1600
10%
300
200
500
+100
-200
20%
500
500
1000
-500
2800
2200
5100
+600
-2300
Cumulative Totals

Task
%
Complete
EV
AC
PV
CV
SV
Finished
2000
1500
2000
+500
50%
1200
1000
2400
+200
-1200
30%
900
800
1000
+100
-100
40%
1000
1500
2000
-500
-1000
Cumulative Totals
5100
4800
7400
+300
2300

Task
%
Complete
EV
AC
PV
CV
SV
Finished
2000
1500
2000
+500
Finished
2400
2000
2400
+400
50%
1500
800
2000
+700
-500
60%
1500
1500
2200
-700
25%
400
400
400
7800
6200
9000
+160
0
1200
Cumulative Totals

Task
%
Complete
EV
AC
PV
CV
SV
Finished
2000
1500
2000
+500
Finished
2400
2000
2400
+400
80%
2400
2100
2300
+300
+100
80%
2000
1800
2400
+200
-400
50%
800
600
800
+200
9600
8000
9900
+160
0
-300
Cumulative Totals
Indexes
Perio
d
SPI
CPI
PCIB
1.00
2.00
.07
1.00
1.33
.14
SPI = EV / PV
.55
1.27
.19
CPI = EV / AC
.69
1.06
.35
PCIB = EV /
BAC
.87
1.26
.54
.96
1.20
.66
6. The following data have been collected for a British health care IT
project for two-week reporting periods 2 through 12. Compute the SV,
CV, SPI, and CPI for each period. Plot the EV and the AC on the
summary graph provided. Plot the SPI, CPI and PCIB on the index
graph provided.
(You may use your own graphs.)
What is your
assessment of the project at the end of period 12?

Task
EV
($00)
AC
PV
CV
SV
Complete
1
50%
Cumulative Totals

Task
EV
AC
PV
CV
SV
Finished
10
-2
Cumulative Totals
10
-2
%
Complete
($00)

Task
%
Complete
($00)
EV
AC
PV
CV
SV
10
-2
Finished
25%
10
15
10
-5
33%
10
12
10
-2
0%
10
-10
28
37
38
-9
-10
Cumulative Totals

Task
%
Complete
($00)
EV
AC
PV
CV
SV
10
-2
Finished
30%
12
20
20
-8
-8
60%
18
25
25
-7
-7
0%
20
-20
38
55
73
-17
-35
Cumulative Totals

Task
%
Complete
($00)
EV
AC
PV
CV
SV
10
-2
Finished
60%
24
30
30
-6
-6
Finished
30
40
30
-10
50%
10
20
20
-10
-10
0%
30%
18
24
20
-6
-2
90
124
108
-34
-18
Cumulative Totals

Task
%
Complete
($00)
EV
AC
PV
CV
SV
Finished
10
-2
Finished
40
50
40
-10
Finished
30
40
30
-10
Finished
20
40
20
-20
50%
20
30
20
-10
50%
30
40
40
-10
-10
148
210
158
-62
-10
Cumulative Totals
Indexes
Perio
d
SPI
CPI
PCIB
4/4 = 1.0
4/4 = 1.0
4/248 = .02
8/8 = 1.0
8/10 = .80
8/248 = .03
SPI = EV / PV
28/38 = .74
28/37 = .76
28/248 = .
11
CPI = EV / AC
38/73 = .52
38/55 = .69
38/248 = .
15
PCIB = EV /
BAC
10
90/108 = .83
90/124 = .
73
90/248 = .
36
12
148/158 = .
94
148/210 = .
70
148/248 = .
60
After 12 time periods the project is roughly 60 percent and the project is only
getting 70 cents worth of work for each dollar spent. The project is currently
$6,200 over budget. There is $1,000 worth of work that supposed to have been
done that has not been completed according to plan. However, this work
involved a noncritical activity and the project is on schedule with regards to the
critical path.
PCIB = .60

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Chapter-13 page 445

3. Schedule variance (SV) is in dollars and does not directly represent

4. How would a project manager use the CPI?

5. What are the differences between BAC and EAC?

BAC is the planned budget at completion. EAC is the estimate at completion.

Status Report: Ending Period 1

Status Report: Ending Period 2

Status Report: Ending Period 3

Status Report: Ending Period 4

Status Report: Ending Period 5

Status Report: Ending Period 6

Status Report: Ending Period 2

Status Report: Ending Period 4

Status Report: Ending Period 6

Status Report: Ending Period 8

Status Report: Ending Period 10

Status Report: Ending Period 12

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