Question

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 at Completion    ($)	Actual Cost ($)	% Complete
a	-	2	300	400	100
b	a	3	200	250	100
c	b	3	300	300	100
d	b	5	600	200	30
e	c,d	4	400	-	0

1. CV =
2. SV =
3. CPI =
4. SPI=
5. CR=
6. EAC=

Answer 1

We prepare a Gantt Chart to find Planned Value as shown below:

As seen from above, at end of week 6,

Activity a and b are 100% complete, Activity c is (1/3) = 33.33% complete, activity d is 1/5 = 20% complete and activity e is 0% complete

We get planned value for each activity as shown below:

Activity a = 100% * 300 = 300

b = 100% * 200 = 200

c = 33.33% * 300 = 100

d = 20% * 600 = 120

e = 0% = 0

Total Planned Value = PV = 300 + 200 + 100 + 120 + 0 = 720

Earned Value = 100% * 300 + 100% * 200 + 100% * 300 + 30% * 600 + 0% * 400 = 300 + 200 + 300 + 180 + 0 = 980

Actual cost = AC = 400 + 250 + 300 + 200 = 1,150‬

Total Budget at completion = 300 + 200 + 300 + 600 + 400 = 1800

BAC = $ 1800

PV = $ 720

EV = $ 980

AC = $ 1150

a. CV = EV - AC = 980 - 1150 = $ (-170‬)

b. SV = EV - PV = 980 - 720 = $ 260

c. CPI = EV / AC = 980 / 1150 = 0.852

d. SPI= EV / PV = 980 / 720 = 1.361

e. CR= CPI * SPI = 0.852 * 1.361 = 1.16

f. EAC = BAC / CPI = 1800 / 0.852 = $ 2,112.68

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