You are preparing a project to lay fiber optic cable. The first task is to mobil

Question

You are preparing a project to lay fiber optic cable. The first task is to mobilize the team. You estimate this will take one week and cost $3000. The second task is to lay the cable. This will take three weeks and will cost $45,000. The total length of the cable is 15 miles. The last task, which will take one week, is to Terminate and test the cable. You budget $5000 for this. At the end of the first week, you have completed mobilization, but it cost a total of $4500. At the end of the third week, you have completed five miles of cable at a total cost of $28,000 (installation only). It takes you a total of 10 weeks to complete the entire project, for a total cost of $65,000.

At the end of week 3:

What is your SPI?

What is your CPI?

What is your EAC?

Explanation / Answer

SPI (Schedule Performance Index) = Earned value / Planned Value

Planned value at the end of three week = planned value of first task at the end of week 1 + planned value of second task at the end of week 3

Planned value at the end of three week = $3000 + 66.66% of $45000

Planned value at the end of three week = $33000

Earned value at the end of three week = earned value of first task at the end of week 1 + earned value of second task at the end of week 3

Since, only 5 mile cable is installed that is 33.33% of total cable length (15 mile). Then,

Earned value of second task at the end of week 3 = 33.33% of $45000 = 15000

Earned value of first task at the end of week 1 = 3000

Earned value at the end of three week = 3000+15000 = $18000

SPI (Schedule Performance Index) = Earned value / Planned Value

SPI (Schedule Performance Index) = 18000/33000 = .545

CPI (cost performance index) = Earned Value / Actual Cost

Actual cost after week 3 = Actual cost for first task at the end of week 1 + Actual cost for second task at the end of week 3

Actual cost after week 3 = 4500+28000 = $32500

CPI (cost performance index) =18000/32500 = .553

Estimate at completion = Budget at completion at the end of week 3 / cost performance index

Budget at completion = Budget for first task + budget for second task for two weeks

Budget at completion = 3000 + 66.66% of $45000

Budget at completion = 3000+30000 = $33000

Estimate at completion (at the end of week three) = 33000 / .553 = $59674.5

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