Note please solve it by computer because some times it\'s hard to understand the

Question

Note please solve it by computer because some times it's hard to understand the hand writing and number easch answer a,b and c Q 2: Assume you have completed three months of the project. The budget at completion (BAC) was $200 000 for this six month project. Also assume the following: Planned value (PV) $120,000 Earned value (EV) $100,000 Actual cost (AC) S90,000 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? b). How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? c). Use the cost performance (CPI) to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

Explanation / Answer

Given,
The Budget at completion(BAC)=$2000000
Time For the Project=6 months
Time Completed=3 months
Planned Value(Pv)=$120,000
Earned Value(EV)=$100,000
actual Cost(ac)=$90,000

a)
Cost Varience=Earned value-Actual cost
             =$100,000-$90,000
             =$10,000
Schedule Varience=Earned value-planed value
                 =$100,000-$120,000
                 =-$20,000
Cost Performance Index(CPI)=Earned Value/actual value
                      =$100000/$90000
                      =10/9
                      =1.11
Schedule Performance Index(SPI)=Earned Value / Planned Value
                          =$100,000/$120000
                          =10/12
                          =0.83

b)Estimated Cost at completion=BAC/CPI
                              =$200000/1.11
                              =$180,180.1802
   Estimated time to complete=Original time estimate/SPI
                             =6 months/0.83
                             =7.23 Months
Here as we can see tha Estimated time to complete the project after three months of working (more than 7 months) is greater thanthe actual time given to completion of project(6 months). so we can say that project is behind the schedule.

Estimated cost of completion ($180,180 approximately) at the end of three months is less than the budget at completion($200000)
So the project is under budget.
As a whole the project is lagging behind in terms of time but it is doing good in terms of budget.

c)
Estimated Cost at completion=BAC/CPI
                              =$200000/1.11
                              =$180,180.1802.
The project is performing good in terms of budget but it needs improvent in time.

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