Question 1. a) What is the Budget at Completion (BAC) and Earned Value at the en

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Question 1. a) What is the Budget at Completion (BAC) and Earned Value at the end of Month 8? b) What is the Cost Performance Index (CPI) and Schedule Performance Index (SPI) at the end of Month 8? c) Looking at the project as a whole, describe the progress of the project thus far in terms of predicted schedule and cost implications. Tabulated Summary for Project 2079X Month PC AC %Comp EV CPI SPI 1 50 50 10% 2 150 80 20% 3 260 200 30% 4 370 300 45% 5 490 420 55% 6 590 510 65% 7 700 635 75% 8 800 780 80% 9 870 10 930 11 980 12 1000 BAC Notes: PC Planned Cost: What you had planned to spend at a point in the project. AC Actual Costs: What you had actually spent at a point in the project. % Comp Percentage Complete: What percentage of the total project is complete at a point in the project (based on BAC). BAC Budget at Completion: What the total planned cost of the project. EV The Earned Value is calculated based upon the amount of the BAC that has been achieved at the end of each month.

Explanation / Answer

a) BAC = PC at the completion of the project (month12) = 1000

EV at the end of month = BAC*%Comp = 1000*80% = 800

b) CPI = EV/AC = 800/780 = 1.026

SPI = EV/PC = 800/800 = 1

c) At the end of month 8, CPI is greater than 1 , so the project is under budget.

SPI is equal to 1, which means the project is right on schedule.

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