Question

18. Cost variance could exist for control accounts using the LOE work measurement where the earned value is equal to the budget.

True

False

19. The _____ is needed to confirm whether a project is behind schedule if the earned value is less than the budget

21. Identify and describe the three types of work measurement.

Answer 1

18. True

Cost variance could exist for control accounts using the LOE work measurement whereas schedule variance is always zero..

19. The Schedule variance is needed to confirm whether a project is behind schedule if the earned value is less than the budget.

Explanation:

Schedule variance is a vital analytical tool that helps to understand if you are behind or ahead of schedule. It is calculated by subtracting planned value from earned value.

Schedule variance = earned value - planned value

SV = EV - PV

From the above formula, we conclude that

• You are ahead of schedule if the schedule variance is positive.
• You are behind the schedule if the schedule variance is negative
• You are on schedule if the schedule variance is zero

21. The different types of work measurement are as follows.

1. Historical data method
2. Time study
3. Work sampling
4. Synthesis method
5. Predetermined motion time system (PMTS)
6. Analytical estimating

1. Historical data method :

It uses the past performance data to set work performance standards. It is simple to understand, quicker to estimate and easier to implement. However, past performance is not the best basis for fixing performance standards because there may be many changes in technology, employees behaviour, abilities etc.

2. Time study:

Time study with the help of a stopwatch is the most commonly used work measurement method. It was developed by Frederick Winslow Taylor. It is best suited for short cycle repetitive jobs. Most of the production jobs can be easily timed by a time study.

3. Work sampling:

In this type, the workers are observed many times at random. It is done to find out for how much time the worker is actually on the job. It checks how long he is working and how much time he is not working (idle time). The purpose is to estimate what proportion of a worker's time is devoted to work-related activities.

4. Synthesis method :

In this method, the full job is first divided into elements (parts). Then the time taken to do each element of the job is found out and synthesized (totaled). This gives the total time taken for doing the full job. In this technique, the time taken to do each element of the job is found out from previous time studies.So,it gives importance to past-time studies of similar jobs. It also uses standard data.

5. Predetermined motion time system :

In PMTS technique, the normal times are fixed for basic human motions.These time values are used to fix the time required for doing a job. Normally, three times are fixed for one job. That is, one time is fixed for each level of performance. The level of performance may be normal, fast and very fast.

6. Analytical estimating :

It is used for fixing the standard time for jobs, which are very long and repetitive. The standard time is fixed by using standard data. If standard data is not available, then it is fixed based on the experience of work-study engineer.