KIMENJU BONIFACE KIMANI

EICQ/00259/2017
CPM assignment 3: You have planned to spend a total of 100million on a project to finish the
project in 100days. Today is the 20th day since starting the project. Based on your plans you
should have spent 20million and completed 20% of your total work. However, things on ground
are different you have spent 17 million and completed 18% of the total work. Calculate
everything.
Solution
At the start,
Pv(t) =100days
Pv(c)=100,000,000
On the 20th day Pv(work)=20%
Pv(c)=20,000,000
Ev(work)=18% (18days)
Ev(c)=18,000,000
Ac(t)=20days
Ac(c)=17,000,000
a) Schedule variance, SV=EV-PV
18days-20days= -2days
The project is behind schedule by 2 days
b) Cost Variance, CV=EV-AC
18,000,000-17,000,000= 1,000,000
The project is under budget
c) Schedule Performance index, SPI=EV/PV
18days/20days= 0.9
The project is behind schedule since the efficiency of doing the work is 0.9.
d) Cost performance index
CPI=EV/AC
18,000,000/17,000,000 = 1.059
The project is under budget meaning that for every Ksh. 1 used in the project a value of Ksh.
1.059 is obtained
 e) Budget at completion(BAC)
100,000,000
f) Estimate at completion(EAC)
EAC=BAC/CPI
100,000,000/1.059= 94,428,706.33
g) Estimation to completion(ETC)
ETC=EAC-EV
94,428,706.33-18,000,000= 76,428,706.33
h) Variance at completion(VAC)
VAC=BAC- EAC
100,000,000- 94,428,706.33= 5,571,293.67
The project will be completed under the budget by ksh 5,571,293.67
i) To Complete Performance Index (TCPI)
TCPI= (BAC-EV)/ (EAC-AC)
(100,000,000-18,000,000) / (94,428,706.33-17,000,000)
=1.059
It is harder to complete the project in BAC or EAC