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 % EV AC PV CV SV
Task
Complete $ $ $ $ $
A Finished 400 300 400 +100 0
B 50% 1200 1000 800 +200 +400
C 33% 500 500 600 0 -100
D 0% 0 0 0 0 0
E 0% 0 0 0 0 0
Cumulative Totals $2100 $1800 $1800 $+300 $+300

End of Period 8
Actual % EV AC PV CV SV
Task
Complete $ $ $ $ $
A Finished 400 300 400 +100 0
B Finished 2400 2200 2400 +200 0
C Finished 1500 1500 1500 0 0
D 25% 400 300 0 +100 +400
E 33% 300 300 300 0 0
F 0% 0 0 0 0 0
Cumulative Totals $5000 $4600 $4600 $+400 $+400

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

2 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

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 rc is e 1 3 -4 a

0 1 2 2 4 4
1 1 1 1
1 2 3 3 2 5

0 2 3 3 5 5 5 7 6
0 0 0 0 0 0
0 3 3 3 2 5 5 1 6

0 3 2 2 6 5 LEGEND
0 0 0 0 ES ID EF
0 2 2 2 3 5 SL SL

LS DUR LF

Chapter 13 Progress and Performance Measurement and Evaluation 3

 Status Report: Ending Period 1 ($000)
Task % Complete EV AC PV CV SV
1 50% 6 6 4 0 +2
2 40% 6 8 3 -2 +3
3 25% 2 3 4 -1 -2
Cumulative Totals 14 17 11 -3 +3

Status Report: Ending Period 2 ($000)

Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 80% 12 14 10 -2 +2
3 75% 6 8 8 -2 -2
Cumulative Totals 30 35 30 -5 0

4 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

 Status Report: Ending Period 3 ($000)
Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 80% 12 15 15 -3 -3
3 Finished 8 10 8 -2 0
4 50% 3 4 3 -1 0
5 0% 0 0 0 0 0
6 33.3% 3 4 3 -1 0
Cumulative Totals 38 46 41 -8 -3

Status Report: Ending Period 4 ($000)

Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 Finished 15 18 15 -3 0
3 Finished 8 10 8 -2 0
4 Finished 6 8 6 -2 0
5 30% 3 3 6 0 -3
6 66.7% 6 8 6 -2 0
7 0% 0 0 0 0 0
Cumulative Totals 50 60 53 -10 -3

Chapter 13 Progress and Performance Measurement and Evaluation 5

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.

6 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

 Status Report: Ending Period 1
Task % Complete EV AC PV CV SV
1 50% 1000 500 1000 +500 0
Cumulative Totals 1000 500 1000 +500 0

Status Report: Ending Period 2

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
Cumulative Totals 2000 1500 2000 +500 0

Status Report: Ending Period 3

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 0% 0 0 1600 0 -1600
3 10% 300 200 500 +100 -200
4 20% 500 500 1000 0 -500
Cumulative Totals 2800 2200 5100 +600 -2300

Chapter 13 Progress and Performance Measurement and Evaluation 7

 Status Report: Ending Period 4
Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 50% 1200 1000 2400 +200 -1200
3 30% 900 800 1000 +100 -100
4 40% 1000 1500 2000 -500 -1000
Cumulative Totals 5100 4800 7400 -300 -2300

Status Report: Ending Period 5

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 Finished 2400 2000 2400 +400 0
3 50% 1500 800 2000 +700 -500
4 60% 1500 1500 2200 0 -700
5 25% 400 400 400 0 0
Cumulative Totals 7800 6200 9000 +1600 -1200

Status Report: Ending Period 6

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 Finished 2400 2000 2400 +400 0
3 80% 2400 2100 2300 +300 +100
4 80% 2000 1800 2400 +200 -400
5 50% 800 600 800 +200 0
Cumulative Totals 9600 8000 9900 +1600 -300

Indexes
Period SPI CPI PCIB
1 1.00 2.00 .07
2 1.00 1.33 .14 SPI = EV / PV
3 .55 1.27 .19 CPI = EV / AC
4 .69 1.06 .35 PCIB = EV / BAC
5 .87 1.26 .54
6 .96 1.20 .66

8 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

Chapter 13 Progress and Performance Measurement and Evaluation 9
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?

10 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

 Status Report: Ending Period 2 ($00)
Task % Complete EV AC PV CV SV
1 50% 4 4 4 0 0
Cumulative Totals 4 4 4 0 0

Status Report: Ending Period 4 ($00)

Task % Complete EV AC PV CV SV
1 Finished 8 10 8 -2 0
Cumulative Totals 8 10 8 -2 0

Status Report: Ending Period 6 ($00)

Task % Complete EV AC PV CV SV
1 Finished 8 10 8 -2 0
2 25% 10 15 10 -5 0
3 33% 10 12 10 -2 0
4 0% 0 0 10 0 -10
Cumulative Totals 28 37 38 -9 -10

Status Report: Ending Period 8 ($00)

Task % Complete EV AC PV CV SV
1 Finished 8 10 8 -2 0
2 30% 12 20 20 -8 -8
3 60% 18 25 25 -7 -7
4 0% 0 0 20 0 -20
Cumulative Totals 38 55 73 -17 -35

Status Report: Ending Period 10 ($00)

Task % Complete EV AC PV CV SV
1 Finished 8 10 8 -2 0
2 60% 24 30 30 -6 -6
3 Finished 30 40 30 -10 0
4 50% 10 20 20 -10 -10
5 0% 0 0 0 0 0
6 30% 18 24 20 -6 -2
Cumulative Totals 90 124 108 -34 -18

Status Report: Ending Period 12 ($00)

Task % Complete EV AC PV CV SV
1 Finished 8 10 8 -2 0
2 Finished 40 50 40 -10 0
3 Finished 30 40 30 -10 0
4 Finished 20 40 20 -20 0
5 50% 20 30 20 -10 0
6 50% 30 40 40 -10 -10
Cumulative Totals 148 210 158 -62 -10

Chapter 13 Progress and Performance Measurement and Evaluation 11

 Indexes
Period SPI CPI PCIB
2 4/4 = 1.0 4/4 = 1.0 4/248 = .02
4 8/8 = 1.0 8/10 = .80 8/248 = .03 SPI = EV / PV
6 28/38 = .74 28/37 = .76 28/248 = .11 CPI = EV / AC
8 38/73 = .52 38/55 = .69 38/248 = .15 PCIB = EV / BAC
10 90/108 = .83 90/124 = .73 90/248 = .36
12 148/158 = .94 148/210 = .70 148/248 = .60

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.

12 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS

 PCIB = .60

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

Chapter 13 Progress and Performance Measurement and Evaluation 13