In: Operations Management
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:
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Status after 100 days |
Status after 150 days |
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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 |
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E |
500 |
700 |
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