Project Management
Essay Preview: Project Management
Report this essay
Chapter 7–HW: Q12: Refer to the table below. What is the cumulative budgeted cost at the end of week 6?  CBC is $100,000 at the end of week 6[pic 1]Total Expended30704030170170[pic 2][pic 3][pic 4][pic 5][pic 6][pic 7][pic 8][pic 9][pic 10][pic 11]Below is a table of actual costs. What is the cumulative actual cost at the end of week 6? Determine whether there is a cost overrun or under run. What is causing it? CAC at the end of week 6 is $112,000.  There is a cost over run for $12,000. Reason is, Task 1 for $34,000 when only $30,000 was budgeted. The actual cost for Task 2 was $68,000 when it was budgeted for $60,000 up to week 6. Task 3 actual cost was $10,000–which equals its budgeted amount at week 6. [pic 12][pic 13][pic 14][pic 15][pic 16]
[pic 17][pic 18][pic 19][pic 20][pic 21][pic 22][pic 23][pic 24][pic 25][pic 26][pic 27][pic 28][pic 29][pic 30][pic 31][pic 32][pic 33][pic 34][pic 35]Below is a table of the cumulative percentages of work completed by the end of week 6. What is the cumulative earned value of the project at the end of week 6? Is it good? The CEV of the project by end of week 6 is 83.5 Therefore, with the given calculations the actual cost it is not good because it indicates that the actual cost is exceeding the budgeted cost. Aggravating the situation further is the fact that the value of the work performed is not keeping up the actual cost.Task 1: .30 x 100% = 30  Task 2: .70 x 65% = 45.5        Task 3: .40 x 20% = 8  Total CEV  = 83.5[pic 36]What is the CPI at the end of week 6? What is the CV?CPI= CEV/CACCPI= $83,500/$112,000 = 0.745Therefore the CPI is $0.745. Meaning for every $1. Actual expended, only $0.745 of value was accomplished.CV= CEV-CAC CV= $83,500 – $112,00 = -$28,500This indicates that the value of work performed through week 6 is $28,500 less than the amount actually expended