Your project to obtain charitable donations is now 38 days into a planned 48-day
ID: 339713 • Letter: Y
Question
Your project to obtain charitable donations is now 38 days into a planned 48-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 33 days of the project and to bring in $25,300. Even though we are 38 days into the project, we still see that we have only 88% of this activity complete. The second activity relates to company donations and is scheduled to run for 38 days starting on day 5 and extending through day 43. We estimate that even though we should have (33/38) 87% of this activity complete, it is actually only 50% complete. This part of the project was scheduled to bring in $150,300 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 $50,600. So far $175,800 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 indexExplanation / Answer
ACTIVITY
DURATION(DAYS)
RANGE(DAYS)
FUNDS IN/DAY
TOTAL FUNDS IN
A
33
0 TO 33
766.6666667
25300
B
38
5 TO 43
3955.263158
150300
C
10
38 TO 48
5060
50600
Given data:
On completion of 38 days,
ACTIVITY
ACTUAL % COMPLETE
IDEAL % COMPLETE
FUNDS IN
A
88
100
175800
B
50
87
C
0
0
0
Planned Value (PV):
The authorized budget for a planned piece of work. Sometimes called budgeted cost of work scheduled (BCWS)
Earned Value (EV):
The authorized budget for work actually completed. Sometimes known as budgeted cost of work performed (BCWP)
Actual Cost (AC):
The costs actually incurred in completing the work actually achieved ( the work as measured by the earned value above, sometimes called actual cost of work performed (ACWP)
Here in this problem as we need to compare the project progress based on funds we received, I am placing negative sign (as revenue) to make use of the existed formulae without any confusion. For calculation of performance indices, ratios are reversed to get meaning full results.
Below are the formulae:
BCWS OR PV = (-)*(IDEAL % COMPLETE)*(TOTAL FUNDS IN)
BCWP OR EV = (-)*(ACTUAL % COMPLETE)*(TOTAL FUNDS IN)
ACWP OR AC = (-)*(ACTUAL FUNDS IN)
CV = BCWP-ACWP
SV=BCWP-BCWS
SPI = BCWS/BCWP
CPI = ACWP/BCWP
Calculated as per the formulae:
BCWS OR PV
BCWP OR EV
ACWP OR AC
A
-25300
-22264
-175800
B
-130523.684
-75150
C
0
0
0
TOTAL
-155823.684
-97414
-175800
CV
78386
SV
58409.68421
CPI
1.599602564
SPI
1.804668733
CONCLUSION: PROJECT IS AHEAD OF THE PLANNED SHCEDULE AS THE FUNDS IN IS MORE THAN THE PLANNED. BUT IN TERMS OF INDIVIDUAL ACTIVITIES, IT SEEMS THAT PROJECT IS LAGGING, BUT WHEN WE EVALUATE IT BASED ON FUNDS TO COLLECT IN TIME, PROJECT IS AHEAD OF THE ESTIMATES.
THANK YOU.
ACTIVITY
DURATION(DAYS)
RANGE(DAYS)
FUNDS IN/DAY
TOTAL FUNDS IN
A
33
0 TO 33
766.6666667
25300
B
38
5 TO 43
3955.263158
150300
C
10
38 TO 48
5060
50600
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