2. Information about a certain project is given in the table below, with duratio

Question

2. Information about a certain project is given in the table below, with durations given in weeks. At the end of the 4° week, the project manager generated a project progress report which is summarized in the table. Using proportional budget figures, determine the current cost, schedule, and time variances for this project. Also determine CPI, SPI, and CSI. Comment on the overall condition of the project at this point in time. Activity |Predecessor Duration (weeks! Budget Cost! Actual Cost|% Complete 0,000 $28,000 24,000 $28,000 S72,00060,000 $40,000 $24,000 $24,000 100 100 67 50

Explanation / Answer

SPI

schedule perfomance index is the comparision of planned project schedule and actual progress

Thus SPI=EV/PV

Where EV is the earned value

PV is the planned value

if SPI is greater then 1 it means work has been completed then the panned work. in other word ahead of schedule

if SPI is less then 1 it means less work has been completed then the planned i.e you are behind the schedule

If SPI is equal to 1 it mean work is beign completed at about the same rarte as planned, you are on time.

since the darta given is based on critical path method the SPI will cause an erronous result..

CPI of the project. - it is an indication of how well the project is remainimng on the budget.. the CPI can be determined by dividing earned value by actual cost.. thus if CPI =1 EARNING AND SPENDING ARE EQUAL

CPI>1 EARNING MORE THEN THE AMOUNT SPENT    CPI<1 EARNING LESS THEN THE AMOUNT SPENT

Schedule variance and cost variance are two importantparameter in earned value management. it helps in analysing the project progess.i.e performance in times of schedule and cost. THE FORMULA FOR SCHEDULE VARIANCE=EV-PV. .IF sv=positive you are ahead of schedule. If sv= negative it mean behind schedule . If sv=0 then on the schedule.

COST VARIANCE deals with cost base line of the project. it provides the information about whether you are over budget or under budger, in terms of $.it is a measure of cost performance of a project. FORMULA FOR COST VARIANCE (CV)=EV-AC

IF CV=POSITIVE YOU ARE UNDER BUDFGET; IF CV=NEGATIVE IT MEANS YOU ARE OVER BUDGETED.IF CV=0 IT MEANS YOU ARE ON BUDGET.

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