Software Project Management

Assignment No. 04

Mahnoor Abdul Razzaq (01-131182-041)

Hudabia Shafique (01-131182-014)
Dr. Tamim Ahmed Khan

BAHRIA UNIVERSITY
ISLAMABAD
Department of Software Engineering
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Question No 1

WBS and Cost Tables:

Project Controlling against Schedule:

 Planned value (PV): PV is the budgeted cost for the work scheduled to be completed
on an activity or WBS component up to a given point in time.
 Earned value (EV): EV is the budgeted amount for the work actually completed on
the schedule activity or WBS component during a given time period.
 Actual cost (AC): AC is the total cost incurred in accomplishing work on the schedule
activity or WBS component during a given time period.

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Calculations

The earned value is the total budgeted amount for the work actually completed on the schedule
activity. The EV is equal to PV in month of December as 100% of the work is
completed for this month

S. No. Months PV ($) EV ($) AC ($)

1 5,September 97 92 105

2 5, October 203 203 203

3 5,November 305 295 410

4 5, December 500 500 420

5 31, December 795

BAC = 795

The cost of PV, EV, AC and BAC for the month of December is given below.
PV = $500
EV = $500
AC = $420
BAC = $795

Schedule Variance (SV): The formula of SV is given below:

SV = EV – PV
SV = 500 - 500= $0 (On Schedule)

As, Schedule Variance is zero so we can say our project is On Schedule

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Cost Variance (CV): The formula of CV is given below:

CV = EV – AC
CV =500 – 420 = $80 (Under Cost)

As, Cost Variance is positive so we can say our project is Under budget

Cost Performance Index (CPI): The formula of CPI is given below:

CPI = EV/AC

CPI = 500/420 = $1.190 (Cost Underrun Estimate)

As, Cost Performance index is greater than 1 so we can say

our project is Under budget

Schedule Performance Index (SPI): The formula of SPI is given below:

SPI = EV/PV
SPI = 500/500 = $1(Schedule On Estimate)
As, Schedule Performance Index is equal to 1 so we can say our project is On Schedule
Estimate at Completion (EAC): The formula of EAC is given below:

EAC = BAC/CPI
EAC = 795/1.190= $668

Variance at Completion (VAC): The formula of VAC is given below:

VAC = BAC - EAC

VAC = 795-668= $127

To Complete Performance Index (TCPI): The formula of TCPI is given below:

TCPI = (BAC – EV) / (EAC – AC)

TCPI = (795 – 500) / (668-420)
TCPI = $1.1895

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Question No 2
Please explain why there is a variance and what new dates for
completion of the project?

Our Cost Variance is positive and Schedule Variance is zero, that’s means that we are on
schedule and under budget. So therefore as we are on schedule so there will be no new dates we
will be keep going with previous dates

Question No 3
What is the expected variance in the cost under current
circumstances?

Variance at Completion (VAC) is a project management key performance indicator that shows the
difference (in dollars) between the starting project budget (Total Budgeted Cost) and the forecasted
project budget when the project is complete (Estimate at Completion or EAC) As in these current
circumstances, we have positive VAC that is $127 that means our Project is forecasted to not fully
use all the planned budget by completion.

Analysis of the Progress:

% of Work Scheduled: The formula to calculate % of work scheduled is given below:

% of Work Scheduled = PV/BAC x 100%

% of Work Scheduled = 500/795 x 100%= 62.89%

% of Budget Spent: The formula to calculate % of budget spent is given below:

% of Budget Spent = AC/BAC x 100%

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% of Budget Spent = 420/595 x 100%= 52.83%

% of Work Accomplished: The formula to calculate % of work accomplished is given below:

% of Work Accomplished = EV/BAC x 100%

% of Work Accomplished = 500/795 x 100%= 62.89%

Conclusion

By doing all required calculations, it was analyzed that the project is on schedule and under cost.
Moreover, the cost is underrunning the estimate while the schedule is according to the estimated.

The percentage of work scheduled, budget spent, and work accomplished are 62.89%, 52.83% and
62.89% respectively.

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