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PREDICT 475:

Project Management

Chap 13
Problem Solving Session
Exercises 13.1 & 2

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.
Exercises 13.1 & 2

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
SV = EV – PV
Exercises 13.1 & 2

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 = 2100 – 2000 = 100


SV = EV – PV = 2100 – 2400 = -300
Exercises 13.1 & 2

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 = 2100 – 2000 = 100


SV = EV – PV = 2100 – 240 0 = -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?
Exercises 13.1 & 2

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 = 2100 – 2000 = 100


SV = EV – PV = 2100 – 2400 = -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
SV = EV – PV
CPI = EV / AC
Exercises 13.1 & 2

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 = 2100 – 2000 = 100


SV = EV – PV = 2100 – 2400 = -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
Exercises 13.1 & 2
Basics Calculation Comments
PV The planned time-phased value of the MS Project: BCWS – Budgeted cost of the work scheduled
work that is scheduled
EV Earned value is simply percent complete EV = % Complete * PV MS Project: BCWP – Budgeted cost of the work performed
times its budgeted cost of the work
AC Actual cost of the work completed MS Project: ACWP – Actual cost of the work performed
BAC The total planned value of the project Budgeted cost at completion
Cost
CV Cost variance adjusted budget costs to the CV = EV - AC Negative number indicates over budget. Positive number indicates under budget. Need to know %
actual spent costs over budget to indicate magnitude.
CPI Cost performance index is a measure of CPI = EV / AC A value less than 1 indicates a cost overrun. A value greater than 1 indicates cost savings. CPI = .90
cost efficiency on a project means “we are only earning 90 cents of planned work for each dollar spent.” Found on the EV Cost
Indicators Table in MS Project.
TCPI To complete performance index TCPI = The amount of value each remaining dollar must earn for the project to stay within budget. A number
(BAC - EV) / (BAC - AC) greater than 1 means there is more work than there is budget left. A number less than 1 means there
is less work than there is budget left. Found on the EV Cost Indicators Table in MS Project.
Schedule
SV Schedule variance: How much work that SV = EV - PV Negative number indicates work that was suppose to be done at this time has not been done. Positive
has been done compared with how much number indicates work that was not suppose to be done by this time has been accomplished. SV = -
should have done at this point in time 1,000 means $1,000 worth of work that was scheduled to be done at this time has not been
accomplished.
SPI Schedule performance index is a measure SPI = EV / PV A value less than 1 indicates that work on the project is behind schedule. A value greater than 1
of schedule efficiency on a project indicates work on the ahead of schedule. SPI = 1.10 means “$1.10 worth of work has been
accomplished for each $1 worth of scheduled work.” Found at MS EV Schedule Indicators Table.
Critical Look at current activity on the critical Compare the planned early start of most recent critical activity with the actual start. Alternative
Path path or most recent milestone to see if it compare most recent milestone date and actual milestone date.
is on schedule
PCIB Percent complete in terms of budget PCIB = EV / BAC What percentage of work has been completed to date based on planned budget. A good indicator of
how much of the project has been completed. Not available in MS Project.
PCIC Percent complete in terms of expected PCIC = AC / EACe What percentage of work has been completed to date based on revised estimates of total project costs.
costs Preferred when you have confidence in revised estimates and or budget is not fixed. Not available in
MS Project.
Forecast
EACf Forecasted estimate cost at completion EACf = Gray & Larson refer to this as FAC or EAC f. If we continue to earn ?? (CPI) on the project, how
AC + [(BAC - EV) / CPI] much will the total cost be? Reliability increases as PCIB or PCIC increases.
EACe Revised estimate cost at completion EACe = AC + ETC ETC equals the revised estimates for remaining work. Only valid if revised estimates have been
entered.
VAC Forecasted cost variance VAC = BAC - EACf Positive number indicates that the project will be completed under budget. A negative number
suggests that it will be completed over budget. Gray & Larson refer to it as VAC f. Preferred on large
projects and when it is not practical to obtain valid revised estimates.
VACe Revised estimate cost variance VACe = BAC - EACe Positive number indicates that the project will be completed under budget. A negative number
suggests that it will be completed over budget.
Exercise 13.3

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?
Exercise 13.3

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?
Exercise 13.3

Network Information
Network Information Preceding Activity
Table 6.2 Activity
A
Description
Whatever - 1
Activity
none
Time
2
B Whatever -2 A 6
C Whatever -3 A 5
D Whatever -4 B 4
E Whatever -5 C 3
F Whatever -6 D, E 3
Exercise 13.3
Network Information
Network Information Preceding Activity
Table 6.2 Activity
A
Description
Whatever - 1
Activity
none
Time
2
B Whatever -2 A 6
C Whatever -3 A 5
D Whatever -4 B 4
E Whatever -5 C 3
F Whatever -6 D, E 3
Exercise 13.3
Network Information
Network Information Preceding Activity
Table 6.2 Activity
A
Description
Whatever - 1
Activity
none
Time
2
B Whatever -2 A 6
C Whatever -3 A 5
D Whatever -4 B 4
E Whatever -5 C 3
F Whatever -6 D, E 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
B D

A F

C E
Exercise 13.3
Network Information
Network Information Preceding Activity
Table 6.2 Activity
A
Description
Whatever - 1
Activity
none
Time
2
B Whatever -2 A 6
C Whatever -3 A 5
D Whatever -4 B 4
E Whatever -5 C 3
F Whatever -6 D, E 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
B D

6 4

A F

2 C E 3

5 3
Exercise 13.3

B D
Forward Pass
6 4

A F

2 C E 3

5 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
Exercise 13.3

2 B 8 8 D 12
Forward Pass
6 4

0 A 2 12 F 15

2 2 C 7 7 E 12 3

5 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
Exercise 13.3

2 B 8 8 D 12
Forward Pass
6 4

0 A 2 12 F 15

2 2 C 7 7 E 12 3

5 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
2 B 8 8 D 12
Backward Pass
6 4

0 A 2 12 F 15

2 2 C 7 7 E 12 3

5 3
Exercise 13.3

2 B 8 8 D 12
Forward Pass
6 4

0 A 2 12 F 15

2 2 C 7 7 E 12 3

5 3
Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
2 B 8 8 D 12
Backward Pass
2 6 8 8 4 12

0 A 2 12 F 15

0 2 2 2 C 7 7 E 12 12 3 15

4 5 9 9 3 12
Exercise 13.3

2 B 8 8 D 12
Total/Free
Slack 2 6 8 8 4 12

0 A 2 12 F 15

0 2 2 2 C 7 7 E 10 12 3 15

4 5 9 9 3 12 Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
Exercise 13.3

2 B 8 8 D 12
Total/Free 0 0 8 0
Slack 2 6 8 8 4 12

0 A 2 12 F 15
0 0 0 0
0 2 2 2 C 7 7 E 10 12 3 15
2 2 2 2
4 5 9 9 3 12 Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
Exercise 13.3

2 B 8 8 D 12
0 0 8 0
2 6 8 8 4 12

0 A 2 12 F 15
0 0 0 0
0 2 2 2 C 7 7 E 10 12 3 15
2 2 2 2
4 5 9 9 3 12 Legend
ES ID EF
SL(T) SL(F)
LS DUR LF
Exercise 13.3

2 B 8 8 D 12
0 0 8 0
2 6 8 8 4 12

0 A 2 12 F 15
0 0 0 0
0 2 2 2 C 7 7 E 10 12 3 15
2 2 2 2
4 5 9 9 3 12 Legend
ES ID EF
SL(T) SL(F)
LS DUR LF

CP
Exercise 13.3

2 B 8 8 D 12
0 0 8 0
2 6 8 8 4 12

0 A 2 12 F 15
0 0 0 0
0 2 2 2 C 7 7 E 10 12 3 15
2 2 2 2
4 5 9 9 3 12 Legend
ES ID EF
AON SL(T) SL(F)
• Network Info LS DUR LF
Table 6.2
• Nodes, Logic,
Duration CP
• Forward Pass
• Backward Pass
• Slack – Total &
Free
• CP
 Danglers
 Leads/Lags
Exercise 13.3

2 B 8 8 D 12
0 0 8 0
2 6 8 8 4 12
Legend
0 A 2 12 F 15 ES ID EF
0 0 0 0 SL(T) SL(F)
0 2 2 2 C 7 7 E 10 12 3 15 LS DUR LF
2 2 2 2
4 5 9 9 3 12
CP

Time Period (Budget Baseline - PV)


Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A
B
C
D
E
F
Period PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Critical Path Cumulative PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Exercise 13.3

2 B 8 8 D 12
0 0 0 0
2 6 8 8 4 12
Legend
0 A 2 12 F 15 ES ID EF
0 0 0 0 SL(T) SL(F)
0 2 2 2 C 7 7 E 10 12 3 15 LS DUR LF
2 2 2 2
4 5 9 9 3 12
CP

Time Period (Budget Baseline - PV)


Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0
B 6 2 2 8 8 0 0
C 5 2 4 7 9 2 2
D 4 8 8 12 12 0 0
E 3 7 9 10 12 2 2
F 3 12 12 15 15 0 0
Period PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Critical Path Cumulative PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Exercise 13.3

2 B 8 8 D 12
0 0 0 0
2 6 8 8 4 12
Legend
0 A 2 12 F 15 ES ID EF
0 0 0 0 SL(T) SL(F)
0 2 2 2 C 7 7 E 10 12 3 15 LS DUR LF
2 2 2 2
4 5 9 9 3 12
CP

Time Period (Budget Baseline - PV)


Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0
B 6 2 2 8 8 0 0
C 5 2 4 7 9 2 2
D 4 8 8 12 12 0 0
E 3 7 9 10 12 2 2
F 3 12 12 15 15 0 0
Period PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Critical Path Cumulative PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Exercise 13.3

2 B 8 8 D 12
0 0 0 0
2 6 8 8 4 12
Legend
0 A 2 12 F 15 ES ID EF
0 0 0 0 SL(T) SL(F)
0 2 2 2 C 7 7 E 10 12 3 15 LS DUR LF
2 2 2 2
4 5 9 9 3 12
CP

Time Period (Budget Baseline - PV)


Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0
B 6 2 2 8 8 0 0
C 5 2 4 7 9 2 2
D 4 8 8 12 12 0 0
E 3 7 9 10 12 2 2
F 3 12 12 15 15 0 0
Period PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Critical Path Cumulative PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0
B 6 2 2 8 8 0 0
C 5 2 4 7 9 2 2
D 4 8 8 12 12 0 0
E 3 7 9 10 12 2 2
F 3 12 12 15 15 0 0
Period PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Critical Path Cumulative PV Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400

Status Report after 4 Periods:


Actual % EV AC PV CV SV
Task
Complete $ $ $ $ $
A Finished 300 400
B 50% 1000 800
C 33% 500 600
D
E
F
Cumulative Totals
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400

Status Report after 4 Periods:


Task Actual % EV AC PV CV SV
Complete $ $ $ $ $ CPI SPI
EV = %COMP * PV
A Finished 300 400
CV = EV - AC
B 50% 1000 800
C 33% 500 600 SV = EV – PV
D 0% CPI = EV / AC
E 0% SPI = EV / PV
F 0%
Cumulative Totals
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400

Status Report after 4 Periods:


Task Actual % EV AC PV CV SV
Complete $ $ $ $ $ CPI SPI
EV = %COMP * PV
A Finished 400 300 400 100 0 1.33 1.0
CV = EV - AC
B 50% 1200 1000 800 200 400 1.2 1.5
C 33% 500 500 600 0 -100 1.0 .83 SV = EV – PV
D 0%
CPI = EV / AC
E 0% SPI = EV / PV
F 0%
Cumulative Totals
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400

Status Report after 8 Periods:


Task Actual % EV AC PV CV SV
Complete $ $ $ $ $ CPI SPI
EV = %COMP * PV
A Finished 400 300 400 100 0 1.33 1.0
CV = EV - AC
B Finished 1200 1000 800 200 400 1.2 1.5
C Finished 500 500 600 0 -100 1.0 .83 SV = EV – PV
D 25% 300
CPI = EV / AC
E 33% 300 SPI = EV / PV
F 0%
Cumulative Totals
Exercise 13.3
Time Period (Budget Baseline - PV)
Slack Slack Budget
Activity Duration ES LS EF LF (T) (F) (PV) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 2 0 0 2 2 0 0 400 200 200
B 6 2 2 8 8 0 0 2400 200 600 200 600 200 600
C 5 2 4 7 9 2 2 1500 200 400 500 100 300
D 4 8 8 12 12 0 0 1600 400 400 400 400
E 3 7 9 10 12 2 2 900 300 400 200
F 3 12 12 15 15 0 0 600 200 100 300
Period PV Total 200 200 400 1000 700 700 500 900 800 600 400 400 200 100 300
Critical Path Cumulative PV Total 200 400 800 1800 2500 3200 3700 4600 5400 6000 6400 6800 7000 7100 7400

Status Report after 8 Periods:


Task Actual % EV AC PV CV SV
Complete $ $ $ $ $ CPI SPI
EV = %COMP * PV
A Finished 400 300 400 100 0 1.33 1.0
CV = EV - AC
B Finished 1200 1000 800 200 400 1.2 1.5
C Finished 500 500 600 0 -100 1.0 .83 SV = EV – PV
D 25% 400 300 0 100 400 1.33 **
CPI = EV / AC
E 33% 300 300 300 0 0 1.0 1.0 SPI = EV / PV
F 0%
Cumulative Totals
PREDICT 475 – Chap 13 Problem Solving

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