Your project to obtain charitable donations is now 46 days into a planned 56-day

Question

Your project to obtain charitable donations is now 46 days into a planned 56-day project. The project is divided into 3 activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 40 days of the project and to bring in $24,800. Even though we are 46 days into the project, we still see that we have only 92% of this activity complete. The second activity relates to company donations and is scheduled to run for 46 days starting on day 6 and extending through day 52. We estimate that even though we should have (40/46) 87% of this activity complete, it is actually only 50% complete. This part of the project was scheduled to bring in $149,800 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $49,600. So far $175,000 has actually been brought in on the project.

Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your dollar amounts to the nearest whole number. Round your "performance index" values to 3 decimal places.)

rev: 08_07_2014_QC_522

Schedule variance $ Schedule performance index Cost variance $ Cost performance index

Explanation / Answer

At 46 days

Task 1

Planned Completion = 100%

Actual Completion = 92%

Planned Value = 24800

Earned value = 92%*24800 = 22816

Task2

Planned Completion = 40/46 = 87%

Actual completion = 50%

Budget amount = 149800

Planned Value = 87%*149800 = 130326

Earned value = 50%*149800 = 74900

Task 3

Start date = 42 Complete date = 52

Planned Completion = 4/10 = 40%

Actual completion = 0%

Budget = 49600

Planned value = 40%*49600 = 19840

Earned value = 0%*49600 = 0

Overall Project level

Planned value,PV = sum of all three task planned value = 24800 + 130326 + 19840 = 174966

Earned value,EV = sum of all three task earned value =22816 +74900 + 0 = 97716

Actual Cost ,AC = 175000

Schedule variance = EV-PV = 97716- 174966 = -77250

Schedule Performance Index, SPI = EV/PV = 97716/174966 = 0.558

Cost Variance = EV-AC = 97716-175000 = -77284

Cost Performance Index = EV/AC = 97716/ 175000 = 0.558

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