Following are data reporting progress on a project. Work on all tasks contained
ID: 443623 • Letter: F
Question
Following are data reporting progress on a project. Work on all tasks contained in the table is scheduled to be complete as of the day of the report.
Budget
Begun?
Complete?
Actual cost
Earned Value
Task A
3,100
Yes
Yes
3,100
Task B
4,000
Yes
Yes
4,500
Task C
2,500
Yes
Yes
2,250
Task D
4,000
Yes
No
3,500
Task E
3,500
Yes
Yes
4,000
Task F
2,500
No
No
0
Using the 50-50 Rule, what is earned value for this project?
Using the 0-100 Rule, what is earned value for this project?
Note the discrepancy of earned value figures when using the 50-50 Rule and 0-100 Rule. Why is there a discrepancy? Which Rule should we use? Explain your rationale.
Using the 50-50 Rule earned value computation, what is schedule variance for the project as reported?
What is the schedule performance index (SPI)?
Using the 50-50 Rule earned value computation, what is the cost variance for the project as reported?
What is the cost performance index (CPI)?
If the total budget for this project is 50,000, use CPI to compute estimate at complete (EAC).
Using the earned value information garnered from the above table, provide your boss a brief status report on project progress to date. Also, provide projections for future status.
Budget
Begun?
Complete?
Actual cost
Earned Value
Task A
3,100
Yes
Yes
3,100
Task B
4,000
Yes
Yes
4,500
Task C
2,500
Yes
Yes
2,250
Task D
4,000
Yes
No
3,500
Task E
3,500
Yes
Yes
4,000
Task F
2,500
No
No
0
Explanation / Answer
The difference between 50-50 rule and 0-100 rule is with respect to credit of earned value. Under 50-50 rule 50% credit is earned when an element of work (task) is started and the remaining 50% is earned upon completion whereas under 0-100 rule no credit is earned the task is completed.
Based on the above the earned values with the given data is given as below:
The difference between the values of EV under 50-50 rule and 0-100 rule is explained above while defining the rules. Further we should use 0-100 rule as credit can be earned only on completion of the tasks.
Schedule Variance = Earned Vaue - Planned Value = 15100 - 19600 = -4500 (under 50-50 rule)
Schedule Performance Index = EV / PV = 15100/19600 = .77 means project is beyond schedule
Cost Variance = EV - AC = 15100 - 17350 = -2250 (under 50-50 rule)
Cost Performance Index = EV / AC = 15100 /17350 = .87 less than 1 means cost over run
EAC = BAC / CPI = 50000/.87 = 57,471 approximately
The brief status report is that Project is getting delayed and will cost more than the budgeted cost of 50,000
50-50 0-100 Budget Begun? Complete? Actual cost Earned Value Task A 3,100 Yes Yes 3,100 3100 3100 Task B 4,000 Yes Yes 4,500 4000 4000 Task C 2,500 Yes Yes 2,250 2500 2500 Task D 4,000 Yes No 3,500 2000 0 Task E 3,500 Yes Yes 4,000 3500 3500 Task F 2,500 No No 0 0 0 Total 15100 13100