Question

course : IT project management

_{Project Title : Online Book Store}

Scenario Overview :The business-to-consumer aspect of electronic commerce (e-commerce) is the most visible business use of the World Wide Web. The primary goal of an e-commerce site is to sell goods and services online. This project deals with developing an e-commerce website for Online Book Sale. It provides the user with a catalog of different books available for purchase in the store. In order to facilitate online purchase a shopping cart is provided to the user.

question: Use Earned Value Management to find out: Cost performance index (CPI).

Answer 1

The cost performance record (CPI) is a measure of the budgetary viability and effectiveness of a project. It speaks to the sum of completed work for every unit of cost spent.

As a proportion it is determined by partitioning the budgeted cost of work completed, or earned esteem, by the actual cost of the work performed.

For instance, if a project has a earned value of £50,000 however actual costs were £32,000.

CPI = EV/AC =520,000/32,000 = 1.56

On the off chance that the proportion has a value higher than 1, at that point it shows the project is performing admirably against the budget. A CPI of 1 implies that the project is performing on budget. A CPI of under 1 implies that the project is over budget.

Earned Value Management (EVM) causes venture supervisors to gauge venture execution. It is a deliberate task the board procedure used to discover differences in ventures dependent on the examination of worked performed and work arranged. EVM is utilized on the expense and timetable control and can be helpful in venture determining.