Question

In: Operations Management

The status of a project after 100 days and after 150 days is as follows. (EV-Earned...

The status of a project after 100 days and after 150 days is as follows. (EV-Earned Value, PV-Planned Value, AC-Actual Cost in Rs). Determine the time and cost overruns and underruns of:

  1. The project
  2. Of each activity after 100 days and after 150 days.

Show all calculations.

Status after 100 days

Status after 150 days

Activity

EV

PV

AC

EV

PV

AC

A

80

100

200

200

200

250

B

120

200

80

120

300

80

C

300

500

350

300

600

D

100

80

E

500

700

Solutions

Expert Solution

a.

after 100 days,

project EV = 80+120+300 = 500
Project PV = 100+200+500 = 800
project AC = 200+80+500 = 780

Project schedule variance = EV-PV = 500-800 = -300 = time underrun by 300
project cost variance = EV-AC = 500-780 = -280 = Cost overrun by 280

After 150 days,

project EV = 200+120+350+100 = 770
Project PV = 200+300+300+700 = 1500
project AC = 250+80+600+80 = 1010

Project schedule variance = EV-PV = 770-1500 = -730 = time underrun by 730
project cost variance = EV-AC = 770-1010 = -240 = Cost overrun by 240

b.
after 100 days,

Activity A Schedule variance = EV-PV = 80-100 = -20 (time underrun by 20) ; cost variance = EV-AC = 80-200 = -120 (Cost overrun by 120)

Activity B Schedule variance = EV-PV = 120-200 = -80 (time underrun by 80) ; cost variance = EV-AC = 120-80 = 40 (Cost underrun by 40)

Activity C Schedule variance = EV-PV = 300-0 = 300 (time overrun by 300) ; cost variance = EV-AC = 300-500 = -200 (Cost overrun by 200)

Activity D Schedule variance = EV-PV = 0 ; cost variance = 0 (No overrun/underrun)

Activity E Schedule variance = EV-PV = 0-500 = -500 (time underrun by 500) ; cost variance = EV-AC = 0

After 150 days,

Activity A Schedule variance = EV-PV = 200-200   = 0 ; cost variance = EV-AC =200-250 = -50 (Cost overrun by 50)

Activity B Schedule variance = EV-PV = 120-300 = -180 (time underrun by 80) ; cost variance = EV-AC = 120-80 = 40 (Cost underrun by 40)

Activity C Schedule variance = EV-PV = 350-300 = 50 (time overrun by 50) ; cost variance = EV-AC = 350-600 = -250 (Cost overrun by 250)

Activity D Schedule variance = EV-PV = 100-0 = 100 (time overrun by 100) ; cost variance = 100-80 = 20 (Cost underrun by 20)

Activity E Schedule variance = EV-PV = 0-700 = -700 (time underrun by 700) ; cost variance = EV-AC = 0


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