CH13 Exercises 1.

In month 9 the following project information is available: actual cost is $2,000, earned value is $2,100, and planned cost is $2,400. Compute the SV and CV for the project. CV = EV AC = 2,100 2,000 = +100 SV = EV PV = 2,100 2,400 = -300 2. On day 51 a project has an earned value of $600, an actual cost of $650, and a planned cost of $560. Compute the SV, CV, and CPI for the project. What is your assessment of the project on day 51? CV = EV AC = 600 650 = -50 SV = EV PV = 600 560 = +40 CPI = EV / AC = 600 / 650 = .92 3. Given the project network and baseline information below, complete the form to develop a status report for the project at the end of period 4 and the end of period 8. From the data you have collected and computed for periods 4 and 8, what information are you prepared to tell the customer about the status of the project at the end of period 8? The project appears to be doing nicely. In both periods 4 and 8 the cost variance is positive+$300 and +$400, respectively. This suggests a pattern of good cost variance that is under budget. The schedule variance is also positive+$300 and +$400 for period 4 and period 8. Since Task D is already 25% complete, Task B must have been completed at least one period early.

End of Period 4 Actual % Task Complete A Finished B 50% C 33% D 0% E 0% Cumulative Totals End of Period 8 Actual % Task Complete A Finished B Finished C Finished
2

EV $ 400 1200 500 0 0 $2100 EV $ 400 2400 1500

AC $ 300 1000 500 0 0 $1800 AC $ 300 2200 1500

PV $ 400 800 600 0 0 $1800 PV $ 400 2400 1500

CV $ +100 +200 0 0 0 $+300 CV $ +100 +200 0

SV $ 0 +400 -100 0 0 $+300 SV $ 0 0 0

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

D 25% E 33% F 0% Cumulative Totals

400 300 0 $5000

300 300 0 $4600

0 300 0 $4600

+100 0 0 $+400

+400 0 0 $+400

Note: Completion of the answer sheet requires constant reference to the baseline figure.

Chapter 13 Progress and Performance Measurement and Evaluation

4. Given the following project network, baseline, and status information, develop status reports for periods 1-4 and complete the project summary graph (or a similar one). Report the final SV, CV, CPI and PCIB. Based on your data, what is your assessment of the current status of the project? At completion? After 4 time periods the project is roughly 77% (PCIB) complete and is current getting only 83 cents worth of work for each dollar spent. The project is currently $10,000 over budget. There is $3,000 worth of work on critical Activity 5 that has not been completed as planned so the project is behind schedule. Since so much of the project has been completed the project is expected to come in over budget. The forecast cost at completion is $78,000 which is $13,000 over budget. Whether the project will be completed on schedule will depend upon whether Activity 5 can make up for lost time.

E x e c ri se 13 4 -a

0 1 1 0 0 0 0 0 0

1 2 1 2 3 2 3 3 2 3 0 3 2 0 2

2 1 3 3 0 3 2 0 2

4 2 5

4 1 5 5 0 5 7 6 0 1 6

5 0 2 5 5 0 5

6 3

LEGEND
ES SL I D EF SL

LS DUR LF

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

Status Report: Ending Period 1 Task % Complete EV 1 50% 6 2 40% 6 3 25% 2 Cumulative Totals 14 Status Report: Ending Period 2 Task % Complete EV 1 Finished 12 2 80% 12 3 75% 6 Cumulative Totals 30

AC 6 8 3 17 AC 13 14 8 35

PV 4 3 4 11 PV 12 10 8 30

CV 0 -2 -1 -3 CV -1 -2 -2 -5

($000) SV +2 +3 -2 +3 ($000) SV 0 +2 -2 0

Chapter 13 Progress and Performance Measurement and Evaluation

Status Report: Ending Period 3 Task % Complete EV 1 Finished 12 2 80% 12 3 Finished 8 4 50% 3 5 0% 0 6 33.3% 3 Cumulative Totals 38 Status Report: Ending Period 4 Task % Complete EV 1 Finished 12 2 Finished 15 3 Finished 8 4 Finished 6 5 30% 3 6 66.7% 6 7 0% 0 Cumulative Totals 50

AC 13 15 10 4 0 4 46 AC 13 18 10 8 3 8 0 60

PV 12 15 8 3 0 3 41 PV 12 15 8 6 6 6 0 53

CV -1 -3 -2 -1 0 -1 -8 CV -1 -3 -2 -2 0 -2 0 -10

($000) SV 0 -3 0 0 0 0 -3 ($000) SV 0 0 0 0 -3 0 0 -3

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

5. The following labor hours data have been collected for a nanotechnology project for periods 1 through 6. Compute the SV, CV, SPI, and CPI for each period. Plot the EV and the AC on the summary graph provided (or a similar one). Plot the SPI, CPI and PCIB on the index graph provided (or a similar one). What is your assessment of the project at the end of period 6? After 6 time periods the project is roughly 66% complete and so far work on the project has taken 1,600 hours less work than planned. There is 400 hours worth of work on Activity 4 which was suppose to have been done that has not done. Since Activity 4 is on the critical path, the project is behind schedule. If schedule is the number priority, the project manager may want to consider investing some of the savings on accelerating critical activities.

Chapter 13 Progress and Performance Measurement and Evaluation

Status Report: Ending Period 1 Task % Complete EV 1 50% 1000 Cumulative Totals 1000 Status Report: Ending Period 2 Task % Complete EV 1 Finished 2000 Cumulative Totals 2000 Status Report: Ending Period 3 Task % Complete EV 1 Finished 2000 2 0% 0 3 10% 300 4 20% 500 Cumulative Totals 2800

AC 500 500 AC 1500 1500 AC 1500 0 200 500 2200

PV 1000 1000 PV 2000 2000 PV 2000 1600 500 1000 5100

CV +500 +500 CV +500 +500 CV +500 0 +100 0 +600

SV 0 0 SV 0 0 SV 0 -1600 -200 -500 -2300

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

Status Report: Ending Period 4 Task % Complete EV 1 Finished 2000 2 50% 1200 3 30% 900 4 40% 1000 Cumulative Totals 5100 Status Report: Ending Period 5 Task % Complete EV 1 Finished 2000 2 Finished 2400 3 50% 1500 4 60% 1500 5 25% 400 Cumulative Totals 7800 Status Report: Ending Period 6 Task % Complete EV 1 Finished 2000 2 Finished 2400 3 80% 2400 4 80% 2000 5 50% 800 Cumulative Totals 9600 Indexes Period 1 2 3 4 5 6 SPI 1.00 1.00 .55 .69 .87 .96 CPI 2.00 1.33 1.27 1.06 1.26 1.20 PCIB .07 .14 .19 .35 .54 .66

AC 1500 1000 800 1500 4800 AC 1500 2000 800 1500 400 6200 AC 1500 2000 2100 1800 600 8000

PV 2000 2400 1000 2000 7400 PV 2000 2400 2000 2200 400 9000 PV 2000 2400 2300 2400 800 9900

CV +500 +200 +100 -500 -300 CV +500 +400 +700 0 0 +1600 CV +500 +400 +300 +200 +200 +1600

SV 0 -1200 -100 -1000 -2300 SV 0 0 -500 -700 0 -1200 SV 0 0 +100 -400 0 -300

SPI = EV / PV CPI = EV / AC PCIB = EV / BAC

Chapter 13 Progress and Performance Measurement and Evaluation

10

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

6. The following data have been collected for a British health care IT project for two-week reporting periods 2 through 12. Compute the SV, CV, SPI, and CPI for each period. Plot the EV and the AC on the summary graph provided. Plot the SPI, CPI and PCIB on the index graph provided. (You may use your own graphs.) What is your assessment of the project at the end of period 12?

Chapter 13 Progress and Performance Measurement and Evaluation

11

Status Report: Ending Period 2 Task % Complete EV 1 50% 4 Cumulative Totals 4 Status Report: Ending Period 4 Task % Complete EV 1 Finished 8 Cumulative Totals 8 Status Report: Ending Period 6 Task % Complete EV 1 Finished 8 2 25% 10 3 33% 10 4 0% 0 Cumulative Totals 28 Status Report: Ending Period 8 Task % Complete EV 1 Finished 8 2 30% 12 3 60% 18 4 0% 0 Cumulative Totals 38 Status Report: Ending Period 10 Task % Complete EV 1 Finished 8 2 60% 24 3 Finished 30 4 50% 10 5 0% 0 6 30% 18 Cumulative Totals 90 Status Report: Ending Period 12 Task % Complete EV 1 Finished 8 2 Finished 40 3 Finished 30 4 Finished 20 5 50% 20 6 50% 30 Cumulative Totals 148

AC 4 4 AC 10 10 AC 10 15 12 0 37 AC 10 20 25 0 55 AC 10 30 40 20 0 24 124 AC 10 50 40 40 30 40 210

PV 4 4 PV 8 8 PV 8 10 10 10 38 PV 8 20 25 20 73 PV 8 30 30 20 0 20 108 PV 8 40 30 20 20 40 158

CV 0 0 CV -2 -2 CV -2 -5 -2 0 -9 CV -2 -8 -7 0 -17 CV -2 -6 -10 -10 0 -6 -34 CV -2 -10 -10 -20 -10 -10 -62

($00) SV 0 0 ($00) SV 0 0 ($00) SV 0 0 0 -10 -10 ($00) SV 0 -8 -7 -20 -35 ($00) SV 0 -6 0 -10 0 -2 -18 ($00) SV 0 0 0 0 0 -10 -10

12

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

Indexes Period 2 4 6 8 10 12

SPI 4/4 = 1.0 8/8 = 1.0 28/38 = .74 38/73 = .52 90/108 = .83 148/158 = .94

CPI 4/4 = 1.0 8/10 = .80 28/37 = .76 38/55 = .69 90/124 = .73 148/210 = .70

PCIB 4/248 = .02 8/248 = .03 28/248 = .11 38/248 = .15 90/248 = .36 148/248 = .60

SPI = EV / PV CPI = EV / AC PCIB = EV / BAC

After 12 time periods the project is roughly 60 percent and the project is only getting 70 cents worth of work for each dollar spent. The project is current $6,200 over budget. There is $1,000 worth of work that supposed to have been done that has not been completed according to plan. However, this work involved a noncritical activity and the project is on schedule with regards to the critical path.

Chapter 13 Progress and Performance Measurement and Evaluation

13

PCIB = .60

Appendix problems not bothered with, as we will not use the 50/50 or 1-100% rules in DS856.

14

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS