1. Which projects are behind schedule? Explain in detail. 2. Which projects are
ID: 371213 • Letter: 1
Question
1. Which projects are behind schedule? Explain in detail.
2. Which projects are on schedule or ahead of schedule? Explain in detail.
3. Which projects are over budget? Explain in detail.
4. Which projects are on budget or under budget? Explain in detail
5. Which projects are behind schedule and over budget? Explain in detail.
6. Which projects are on schedule and under budget? Explain in detail.
7. Which projects are ahead of schedule and over budget? Explain in detail.
FIGURE 16.1 Project Portfolio Cost Summary Report for Top Management Services, Inc View Cost Project Portfolio Cost Summary ($ 000) Location Project Description EV AC SPI PCIB BAC EAC VAC $18,120 $10,500 3,600 350 All 1-003 Digitize Fingerprints-FBI 3,000 3,500 3,230 08 01-011 Encryption 01-002Internet Protocol--CIA 01-009 Supply Chain Partners 90 01-012 Bonus Mileage Awards 01-005 E-sales Claims 01-011 01-008 Smart Tag Tracking 3,322 278 | | 97.2% 71.4% 0.0% 16.7% 0.0% 35.0% 27.6% 32.1% 1.17 270 0.93 350 1.00 1.00 150 150 380 900 0.93 0.89 1.00 0.93 0.85 1.06 -145 | | 1,230 1,375 900 2,800 | 2,800 Asia/Pacific 1.00 1.00 1.10 120 150 0.96 1.00 .05 120 80.0% 150 02-007 Currency Conversion 125 02-002 Billing System 02-005Web-Based Cash Flow 21 02-004 Olympic Simulation 280 70.0% 73.3%| 300 273 0.0% EEC $4,820 145 18.3% 0.0% 0.0% 35.0% 57.6% 77.3% 110 0.79 0.76 -164 03-008Smart Card 03-003Warranty 03-004Simulation--ESA 03-005 Air Reservation Net 03-007Pilot Internet Log Syst 540 03-006 Intemet Telephone Syt 850 800 1,400 850 1,100 0.94 0.96 0.91 1.00 510 1,486 -104 LEGENDO OUnder Budget O On Budget ·Over Budget 0.99 | 1,113 -13Explanation / Answer
PV stands for Planned Value, EV stands for Earned Value, AC stands for Actual Cost
Various formulas to be used are as follows:
Therefore all projects on time will have SV=0 and those with SV > 0 means before time and those with SV<0 are late or running behind. Similarly SPI=EV/PV is used as follows:
In order to answer Q3 and Q4 CPI=EV/AC is used as follows:
Answer 1
Behind Schedule 01-011, 01-005 and so on
Answer 2
On schedule or ahead 01-003, 01-008, 01-009 and so on
Answer 3
Over budgets 01-005, 01-011 and so on
Answer 4
On or under budget 01-003, 01-008, 01-011 and so on
Too much data to key-in again and sort on the keys like SPI, CPI, etc and too many questions
Please restrict to one at a time for explainations
CV Cost Variance CV = EV - AC CV provides the cost performance of the project to help determine whether the project is proceeding as planned. Subtracting AC from EV calculates the cost variance. SV Schedule Variance SV = EV - PV SV indicates the project's schedule performance. This value can indicate whether the project work is proceeding as planned. Calculate the SV by subtracting the PV from the EV. CPI Cost Performance Index CPI = EV / AC For the CPI of individual budgets, divide EV by AC. For a cumulative CPI, divide the sum of all EV budgets by the sum of all ACs. A CPI of less than one indicates that the project is over budget, and a CPI of over one indicates that the project is coming in under the estimated budget. SPI Schedule Performance Index SPI = EV / PV Project managers can use the SPI to help predict when their projects will be completed. To calculate the SPI, divide EV by PV. An SPI of one indicates the project is on schedule; greater than one indicates it is ahead of schedule; and less than one indicates it is behind schedule. EAC Estimate at Completion EAC = BAC / CPI EAC is used by project managers to give their best estimate of the total costs of projects based on actual costs to date. The most frequently used formula for EAC is AC plus ETC; this formula is typically used when previous assumptions regarding costs are wrong. EAC = AC + ETC EAC = AC + (BAC - EV) ETC Estimate to Complete ETC = EAC - AC ETC is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. VAC Variance at Completion VAC = BAC - EAC VAC forecasts the difference between the Budget-at-Related Questions
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