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10.)At week 24 of a project to shoot a television com- mercial, the project mana

ID: 365914 • Letter: 1

Question

10.)At week 24 of a project to shoot a television com- mercial, the project manager is worried about her budget since costs have risen to $7,500. Is there a cost overage? If so, how much is it? Is the schedule ahead or behind? Overall, does the project appear to be in control? Bud- Prede- Duration get, cessors (weeks) Completed Activity a: Write script b: Screen actors c: Select actors d: Contract studio a e: Obtain props b, c f: Schedule date b, c, d g: Shoot 900 1200 1200 1800 1400 1500 800 100 100 100 100 100 40 0 12 14 10 16 commercial

Explanation / Answer

It is mentioned that activities a, b, c, d, and e are completed 100%.

Activity f is completed 40% and activity g is yet to start.

The budgeted costs with the activities times with their earliest start and finish are as follows:

From above it is apparent that the project is not delayed, in fact e is supposed to get completed in 26 weeks whereas in 24 th week it is 100% and f not critical may be completed by 30th week on prorata basis 40% four weeks work completed, remaining 60%, 6 weeks with 60% cost 900 (.6*1500).

Acivity g may start from 26th week or right now with requirement of $800

Therefore remaining total cost = $1700 (900+800)

Earned Value =$7,100 (900+1200+1200+1800+1400+600)

Total Budget for the project is $8,800, therefore there is cost overrun of $400 as Actual Cost is given as $7,500

Therefore, it is concluded that Schedule is ahead of the critical path.

(say by 2 weeks)

activity predecessors duration Budget %completed ES EF LS LF Slack a --- 6 900 100 0 6 0 6 0 b --- 6 1200 100 0 6 6 12 6 c a 6 1200 100 6 12 6 12 0 d a 12 1800 100 6 18 20 32 14 e b, c 14 1400 100 12 26 12 26 0 f b, c, d 10 1500 40 18 28 32 42 14 g d, e 16 800 0 26 42 26 42 0 Total = 8800 critical path a--c--e--g duration 42 weeks
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