Question

In: Operations Management

4.) You are managing a task on the critical path which has a BAC of $500,000....

4.) You are managing a task on the critical path which has a BAC of $500,000. The task is 80 percent complete. The team has completed 10 weeks on the task, and it was scheduled to take 10 weeks. You have spent $400,000 on the task so far. Calculate the cost performance index (CPI) and schedule performance index (SPI). Briefly explain what the reults mean.

Expert Solution

Total end value = 500,000

Since 80% of the project is over, Earned Value = .8* 500,000 = 400,000

Actual cost = 400,000

Cost Performance Index, CPI = Earned Value / Actual Cost = 400,000/ 400,000 = 100%

Hence, the project is in control of its cost

Since the planned duration was 10 weeks, Total Planned value at the end of 10 weeks = 500,000

Actual Earned value at the end of 10 weeks = 400,000

Therefore, scheduled performance Index, SPI = Earned Value/ Planned Value = 400,000/500,000 = 80%

This indicates that the project is running behind schedule by 20%

Total end value = 500,000

Since 80% of the project is over, Earned Value = .8* 500,000 = 400,000

Actual cost = 400,000

Cost Performance Index, CPI = Earned Value / Actual Cost = 400,000/ 400,000 = 100%

Hence, the project is in control of its cost

Since the planned duration was 10 weeks, Total Planned value at the end of 10 weeks = 500,000

Actual Earned value at the end of 10 weeks = 400,000

Therefore, scheduled performance Index, SPI = Earned Value/ Planned Value = 400,000/500,000 = 80%

This indicates that the project is running behind schedule by 20%

keosha answered 1 year ago

Which network path is the critical path of this project?

In managing a project of the scale and type indicated below, the Critical path method(CPM) is...

In managing a project of the scale and type indicated below, the Critical path method(CPM) is utilized, composed of the following activities and their durations. Activity Time in days preceding activities A 10 -- B 6 -- C 8 A D 3 B E 7 C G 12 B H 5 C F 3 D, G I 5 E, H J K 8 8 C F, I, J a) Draw a critical path network(CPM) network diagram for this project on...

You own a building worth $1,000,000 which also has $500,000 of machinery and equipment, and $500,000...

You own a building worth $1,000,000 which also has $500,000 of machinery and equipment, and $500,000 of ingredients, finished goods and packaging materials in it on a regular basis. You are purchasing a Property Insurance policy that, for premium purposes, has an 80% Coinsurance Clause. Determine how much insurance you need to purchase to comply with the Coinsurance Clause. Provide your calculation for this portion of the answer. Describe the impact to an insurance claim if 1.) You purchased the...

What is the goal of a critical path problem?If you are dispatching delivery trucks in a...

What is the goal of a critical path problem?If you are dispatching delivery trucks in a small geographic area, would you use a max-flow, critical-path or minimum cost network flow model?

Do you think managing your own intrinsic rewards (Meaningfulness, and Competence) will result in a path...

Do you think managing your own intrinsic rewards (Meaningfulness, and Competence) will result in a path to Sustainable Engagement and Fulfillment for you as a leader?

Post 1. Review "Building a Critical Skill: Managing Your Time" . Which of these techniques do...

Post 1. Review "Building a Critical Skill: Managing Your Time" . Which of these techniques do you already use? What challenges do you have in managing your time and how do you overcome them? What skills have you learned since becoming a student? How can use these skills to complete your Formal Report in this class? If you could share on tip with an incoming student about time management what would it be? Your post must be 150-250 words. Post...

The purpose of the task is for you to demonstrate high-level critical reflection and analytical reasoning...

The purpose of the task is for you to demonstrate high-level critical reflection and analytical reasoning skills in the context of the application of Australian taxation law and taxation law policy. You must undertake academic research which demonstrates the following: 1. An in-depth your understanding of how the specific tax law applies, 2. The policy context of the law and if relevant how other jurisdictions deal with similar issues, 3. Critical reflection as to whether the law achieves its stated...

1.Which of the following describes a project managers responsibility? Select one: a. Task Delegation b. Managing...

1.Which of the following describes a project managers responsibility? Select one: a. Task Delegation b. Managing communication between team members c. Getting the project done on time. d. All of the above 2. When people first look at a web page, their eye goes to the: Select one: a. Top right-hand corner b. Bottom left-hand corner c. Bottom right-hand corner d. Top left-hand corner 3. A website’s call to action will work best: Select one: a. At the end of...

Task 4: Develop Strategies for Improved Cultural Safety As part of this task, you are required...

Task 4: Develop Strategies for Improved Cultural Safety As part of this task, you are required to develop strategies for improved cultural safety when working with the Aboriginal and Torres Strait Islander people in your region (in relation to providing the information session). Activities you need to complete are provided in the questions below. Your answers must be 30-40 words each and specific to the Aboriginal and Torres Strait Islander people in your region and the information session being planned....

How can you define critical path in Primavera P6? Provide a short paragraph of description. What...

How can you define critical path in Primavera P6? Provide a short paragraph of description. What is the Leveling tab in Primavera P6 used for? Describe how itworks using the Botanical Garden example. how to add/ delete columns on the activities page? what is Gantt chat? where can you view it in Primavera P6 ? write your on word