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

EV
$
400
1200
500
0
0
$2100

AC
$
300
1000
500
0
0
$1800

PV
$
400
800
600
0
0
$1800

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

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

End of Period 8
Actual %
Task
Complete
A
Finished
B
Finished
C
Finished

EV
$
400
2400
1500

AC
$
300
2200
1500

PV
$
400
2400
1500

CV
$
+100
+200
0

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

1 2
1
2 3

2
1
3

0
0
0

3
0
3

3
0
3

0
0
0

2
0
2

2
0
2

4
2

4
1
5

5
0
2 5

5
0
5

5
0
5

6
0
1 6

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

AC
6
8
3
17

PV
4
3
4
11

CV
0
-2
-1
-3

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

Status Report: Ending Period 2

Task
% Complete
EV
1
Finished
12
2
80%
12
3
75%
6
Cumulative Totals
30

AC
13
14
8
35

PV
12
10
8
30

CV
-1
-2
-2
-5

($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

AC
13
15
10
4
0
4
46

PV
12
15
8
3
0
3
41

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

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

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
18
10
8
3
8
0
60

PV
12
15
8
6
6
6
0
53

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

($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

AC
500
500

PV
1000
1000

CV
+500
+500

SV
0
0

Status Report: Ending Period 2

Task
% Complete
EV
1
Finished
2000
Cumulative Totals
2000

AC
1500
1500

PV
2000
2000

CV
+500
+500

SV
0
0

Status Report: Ending Period 3

Task
% Complete
EV
1
Finished
2000
2
0%
0
3
10%
300
4
20%
500
Cumulative Totals
2800

AC
1500
0
200
500
2200

PV
2000
1600
500
1000
5100

CV
+500
0
+100
0
+600

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

AC
1500
1000
800
1500
4800

PV
2000
2400
1000
2000
7400

CV
+500
+200
+100
-500
-300

SV
0
-1200
-100
-1000
-2300

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

AC
1500
2000
800
1500
400
6200

PV
2000
2400
2000
2200
400
9000

CV
+500
+400
+700
0
0
+1600

SV
0
0
-500
-700
0
-1200

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

AC
1500
2000
2100
1800
600
8000

PV
2000
2400
2300
2400
800
9900

CV
+500
+400
+300
+200
+200
+1600

SV
0
0
+100
-400
0
-300

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

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

PV
4
4

CV
0
0

Status Report: Ending Period 4

Task
% Complete
EV
1
Finished
8
Cumulative Totals
8

AC
10
10

PV
8
8

CV
-2
-2

($00)
SV
0
0

Status Report: Ending Period 6

Task
% Complete
EV
1
Finished
8
2
25%
10
3
33%
10
4
0%
0
Cumulative Totals
28

AC
10
15
12
0
37

PV
8
10
10
10
38

CV
-2
-5
-2
0
-9

($00)
SV
0
0
0
-10
-10

CV
-2
-8
-7
0
-17

($00)
SV
0
-8
-7
-20
-35

CV
-2
-6
-10
-10
0
-6
-34

($00)
SV
0
-6
0
-10
0
-2
-18

CV
-2
-10
-10
-20
-10
-10
-62

($00)
SV
0
0
0
0
0
-10
-10

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

12

AC
4
4

($00)
SV
0
0

AC
10
20
25
0
55
AC
10
30
40
20
0
24
124
AC
10
50
40
40
30
40
210

PV
8
20
25
20
73
PV
8
30
30
20
0
20
108
PV
8
40
30
20
20
40
158

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