Using the concepts discussed in Chapter 7, complete the following problems. Be sure to show all calculations, preferably in an EXCEL file. Each problem is of equal value. Each part of a problem is equal.
Problem 1. A project in its 26th week has an actual cost of $300,000. It was scheduled to have completed $325,000 worth of work at that point in the project. For the work performed to date, the budgeted value is $350,000. The project has a total budget of $500,000. What are the cost and schedule variances for the project? What are the SPI and CPI? Assuming that both schedule and cost variances will affect the remaining work, what is the EAC?
a. CV =
b. SV =
c. SPI =
d. CPI =
e. EAC =
Problem 2. A project has just completed its 87th item in the project plan. It was scheduled to have spent $300,000 at this point in the plan, but has actually spent only $250,000. The project manager estimates that the value of the work actually finished is nearly $200,000. What are the spending and schedule variances for the project? What are the SPI and CPI? What is the Critical Ratio?
a. CV =
b. SV =
c. SPI =
d. CPI =
e. CR =
Problem 3. The following project is at the end of its 6th week. Find the cost and schedule variances. Also find the CPI and SPI. Then find the critical ratio of the project using earned value calculations. Finally, calculate the EAC for the project by at least two different methods.
Activity Predecessor Duration (wks) Budget ($) Actual Cost ($) %Complete
a – 2 600 400 100
b – 3 150 180 100
c a 2 250 300 100
d a 5 500 400 20
e b, c 4 400 200 20
a. CV =
b. SV =
c. CPI =
d. SPI=
e. CR=
f. EAC=
Problem 4. Solve the following Case:
Stoneworth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stoneworth the contract, they stipulated a 1% penalty for each week Stoneworth was late on a completion date. Preston Flintrock, the project coordinator for Stoneworth, began to notice that the last two jobs were three weeks late, and the paving job that was due to be completed in the next two weeks was behind schedule. When Preston went in the field to investigate, he found the job to be understaffed, supplier delays, and a high work rejection/repaving needed. As a result, Preston decided to establish a better system of project control and present it to the boss.
a. If you were Preston, what characteristics would you look for in a new control system? Explain
b. Will a new control system be adequate for the problem? Explain
