1 A Bangalore-based software company has obtained a fixed cost contract for the supply, installation,

testing and commissioning of 3,000 desktop computers of the same specification at a cost of `600
lakhs. The company had estimated that it could supply, install, test and commission 100 computers
per day so that the entire work can be completed in 30 days. The project status was reviewed
after the completion of 20 days. It was noted at the time of review that 1,800 computers have been
installed and the cost incurred was `380 lakhs. It was estimated at the time of the review that a
sum of `260 lakhs would be required for completion of the pending work, i.e., installation of the
remaining 1,200 computers.

1) Budgeted cost of work scheduled at the end of 20 days, which is the review period.
(ii) Budgeted cost of work performed till the review period.
(iii) Actual cost of work performed.
(iv) Cost variance
(v) Schedule variance in cost terms
(vi) Cost performance index
(vii) Schedule performance index
(viii) Additional cost for completing the project
(ix) Project duration and whether the project can be completed within the 30 days duration
ly, installation,
cost of `600
00 computers

ters have been

2 A project began on 1 April, 2006 and was expected to be completed by 31 December, 2006. The
project is being reviewed on 30 September 2006 when the following information was sourced:
Budgeted cost for work scheduled (BCWS): `60,00,000
Budgeted cost for work performed (BCWP): `
Actual cost of work performed (ACWP):
Budgeted cost for total work (BCTW):
Additional cost for completion (ACC):

Determine the following:

(i) Cost variance
(ii) Schedule variance in cost term
(iii) Cost performance index
(iv) Schedule performance index
(v) Estimated CPI
(vi) Total cost overrun
(vii) Duration of the project
3 A project has a budget of `250 Crores and is scheduled to complete in a period of 80 weeks. A
review of the project at the end of 50 weeks gave the following addition details:
Budgeted cost of work performed (BCWP): `170 Crores
Actual cost of work performed (ACWP): `180 Crores
Budgeted cost of work scheduled (BCWS): `187 Crores

Budget 250
Duration 80
BCWP 170
ACWP 180
BCWS 187
Find the following:
(i) Cost variance
(ii) Schedule variance in cost terms
(iii) CPI
(iv) SPI
(v) Cost of completion
(vi) Time of completion
4 A project has a budget of Rs. 5,00,000 and is scheduled to be completed in 1 year. Table 13.2 shows
the cumulative values of planned costs, earned value and actual costs at the end of each of the first
4 months.
BCWS BCWP ACWP
Planned Earned Actual
Month Cost Value Cost CPI
1 20000 24000 23500
2 60000 58000 62000
3 110000 95000 105000
4 220000 190000 205000

Calculate the following values:

(a) Cost performance index for each of the 4 months.
(b) Schedule performance index for each of the 4 months.
(c) Estimated cost to complete the project based on the performance at the end of the 4th month.
(d) Estimated time to complete the project based on performance at the end of the 4th month.
13.2 shows
of the first

SPI
The following data (Table 13.4) are known about a project when the project review was conducted:

Scheduled Actual Budget Actual BCWP BCWS

1 100 100 10 12 10 10
2 100 100 12 12.5 12 12
3 70 60 18 12 10.8 12.6
4 55 50 25 13 12.5 13.75
5 30 25 20 6 5 6
6 10 0 15 0 0 1.5
7 0 0 10 0 0 0
8 0 0 8.5 0 0 0
9 0 0 6.5 0 0 0
10 0 0 5 0 0 0
130 55.5 50.3 55.85

The project is expected to be completed in 35 days. Find the following:

(i) Budgeted cost for work scheduled
(ii) Budgeted cost for work performed
(iii) Cost variance
(iv) CPI
(v) SPI
(vi) Cost of completion of the project
(vii) Time of completion of the project
was conducted:

CV
-2
-0.5
-1.2
-0.5
-1
0
0
0
0
0
-5.2
The following information (Table 13.6) is available at the end of day 40 of a new plant erection
project. Determine if the project is under control based on earned value evaluation system, and if
not, what is the likely extent of cost and time overruns at completion.

(Days) Rs. 000

Activity Predecessor(s) Duration total BudgetActual till % completion
A – 10 300 250 100
B A 8 400 450 100
C A 12 350 380 100
D C 0 0 0 0
E B,D 18 405 400 70
F E 16 450 0 0
The progress observed at the end of the 7th day from the beginning of a 12-day duration project is
given in Table 13.8. The actual cost incurred till date is reported to be `3,100.00.
Draw a Gantt chart for the project and find the project performance on the basis of cost
and schedule performance indices. (Assume the activity costs are incurred uniformly over its
duration).
Activity PredecessoDuration Budget cosactual progress
A – 3 600 100
B – 1 200 100
C A 4 800 75
D B 4 700 100
E B 5 500 95
F D 2 200 80
G E 3 500 50
H C 4 400 0
I F 2 600 0
J G 3 300 0