Consider the information about a project in the following tables: Task Predecess
ID: 2749697 • Letter: C
Question
Consider the information about a project in the following tables:
Task Predecessor Duration (days) Scheduled Cost/Day
A
-----
4
$1,000
B
-----
6
$1,000
C
A
6
$4,000
D
B
9
$2,000
(Assume 5 working days each week)
End of Week 1 End of Week 2
Actual % Cumulative Actual % Cumulative
Task Completed Actual Cost Completed Actual Cost
A
50%
$3,000
100%
$5,000
B
40%
$4,000
100%
$8,000
C
0%
$0
80%
$25,000
D
0%
$0
60%
$10,000
Use the earned value approach to calculate all measures, indices and variances for each task and the whole project at the end of weeks 1 & 2.
Task Predecessor Duration (days) Scheduled Cost/Day
A
-----
4
$1,000
B
-----
6
$1,000
C
A
6
$4,000
D
B
9
$2,000
Explanation / Answer
The variance computations are as follows:
For the first week:
Task
Cost of task
% completed
Earned
Planned value
SV
A
3000
50%
1500
1000
500
B
4000
40%
1600
1000
600
C
0
0%
0
4000
0
D
0
0%
0
2000
0
Schedule variance = Earned – Planned
For the second week:
Task
Cost of task
% completed
Earned
Planned value
SV
A
5000
100%
5000
5000
0
B
8000
100%
8000
5000
3000
C
25000
80%
20000
20000
0
D
10000
60%
6000
10000
-4000
Task
Cost of task
% completed
Earned
Planned value
SV
A
3000
50%
1500
1000
500
B
4000
40%
1600
1000
600
C
0
0%
0
4000
0
D
0
0%
0
2000
0