Your project to obtain charitable donations is now 46 days into a planned 56-day
ID: 376326 • Letter: Y
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 4046 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.) Schedule variance Schedule performance index Cost variance Cost performance indexExplanation / Answer
Planned Value, PV = 24800*100% + 149800*(40/46) + 49600*0% = 155,061
Earned Value, EV = 24800*92% + 149800*50% + 49600*0% = 97,716
In this situation Actual Cost is not 175000 , it is fund collection, so it is not a cost. Actual cost is difference of Funds to be collected and actual collection. Therefore, Actual Cost, AC = (24800+149800+49600) - 175000 = 49200
Schedule Variance = EV - PV = 97716 - 155061 = - 57345 (negative sign indicates project is behind schedule)
Schedule Performance Index = EV/PV = 97716/155061 = 0.6302 (value is <1, indicating project behind schedule)
Cost Variance = EV - AC = 97716 - 49200 = 48516 (value is positive, indicating project is ahead of target fund collection. It is a favorable situation)
Cost Performance Index = Ev/Ac = 97716/49200 = 1.9861 (value > 1 indicating favorable situation)
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