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Project control is a continuous activity in which a project manager monitors the

ID: 426676 • Letter: P

Question

Project control is a continuous activity in which a project manager monitors the progress and takes measures to control the project scope, cost, and schedule deviation. Cost and schedule performance indices are part of variance analysis. In this assignment, you will perform a variance analysis for the cost and schedule of this project Suppose the following information is valid for a project you are managing: . Planned value of the project $18,800 . Earned value of the project $20,450 . Actual cost of the project $28,700 Estimated budget cost at completion $21,000 . Estimated time of completion 13 months Perform the following tasks: 1. Calculate the following: Cost performance index Schedule performance index Estimated cost at completion Estimated time remaining for completion . 2. What is the status of the project in terms of cost and schedule? Justify your 3. Is the project on schedule and within the estimated budget? Justify your 4. Submit a 3- to 4-page document with the calculations and responses to the response response questions

Explanation / Answer

1.

Cost performance index (CPI) = EV/AC = 20450/28700 = 0.7125

Schedule performance index (SPI) = EV/PV = 20450/18800 = 1.088

Estimated cost at completion ( EAC ) = BAC/CPI = 21000/0.7125 = 29474

Estimated time remaining for completion = (13/21000)*(21000-20450)/1.088 = 0.31 months

2. CPi is less than 1, which means that the project is over budget. SPI values is greater than 1, which indicates that project is ahead of schedule.

3. The project is ahead of schedule. However the project is not whtin the estimated budget. This is shown by EAC, which is greater than BAC.