Question

The total plan for the project involved 1000 staff-days of value (the Budgeted at Completion or BAC) accumulated over 10 months with a staff of 5 full-time people. At the 4-month mark, with no open tasks, the total accumulated earned value is 320 staff-days. The plan at this point is for 340 staff-days to have been earned. Alas, the actual amount spent (because extra staff time has already been spent on this project) is 370 staff-days.

A summary of the facts:

1. Original project cost: 1000 staff-days

2. Original project schedule: 10 months

3. Planned value: 340 staff-days at 4 months

4. Actual cost: 370 staff-days

5. Earned value: 320 staff-days

6. Current monthly staff: 5 people

Answer the following questions

6. What is the projected schedule Estimate at Completion (EAC)?

b. If we assume schedule variance was typical (and the rest of the project will have a proportional variance)?

c. If we assume we can re-plan the remaining project and make a whole new estimate?

7. What are the remaining cost-to-complete and schedule-to-complete figures for each of a, b, and c?

8. What is the intensity of work required to finish the work with the available funds? (These funds can be defined as either the original Budget at Completion (BAC) or the current Cost Estimate at Completion (EAC).)

Answer 1

Original Project Cost, staff days	1000	staff days
Original Project Schedule, months	10	months
Planned Value	340	staff days	at	4	months
Actual Cost	370	staff days
Earned Value	320	staff days
Current monthly staff	5	people
Ans 6
Cost variance (Earned value-actual cost, 320-370)	-50
CPI (Earned value/actual cost, 320/370)	0.86
Cost shortfall (-50=50)	50
Scheduled variance (Earned value-planned value, 320-340)	-20
SPI (Earned value-Planned value, 320/340)	0.94
Schedule shortfall (-20=20)	20
Cost EAC (If atypical variance)=original project cost-CV, 1000-(50)	1050	Staff days
Cost EAC (If Typical variance)=original project cost/CPI, 1000/.86	1156	Staff days
Projected scheduled EAC
Schedule variance atypical (Project schedule x orginal project cost+schedule shortfall)/original project cost, 10x(1000+20)/1000	10.2	Months
Schedule variance typical (Project schedule months / SPI, 10/.94)	10.6	Months
re-plan the remaining project and make a whole new estimate	Some date later than current actual date
Ans 7
remaining cost-to-complete and schedule-to-complete
a Assumption CV is atypical and rest of work will be performed at original budgeted rate, Cost ETC=cost EAC atypical-actual cost, 1050-370)	680	Staff days
b Assumption CV is typical and rest of work will be performed at present CPI, Cost ETC=cost EAC atypical-actual cost, 1156-370)	786	Staff days
c : Assumption is we can replan the reamining project and makea new estimate then ETC is a new value which is result of our re plan
Ans 8
intensity of work required to finish the work with the available funds
Assuming we want to complete within the BAC then to complete performance index is the work remaining (BAC-EV) divide by remaining fund (BAC-ActUal cost)
BAC (Budget at completion) BAC-EV/BAC-AC, TCPI=1000-320/1000-370	1.08
Interpretation:BAC indicates we need to work at greater cost effeciency than originally pallned to be within our BAC
Assuming BAC is no longer a reasonable goal, we need to complete within current EAC and TCPI become work remaining, (BAC-EV)/(EAC-AC)
TCPI=BAC-EV/EAC-AC=(1000-320)/(1156-370)	0.86
Interpretation: We can work at lower cost effeciency than originally planned and finish within our current EAC