Respond to the Following Problems
You are a project manager on a project that uses earned value management. The project has the following budget and status:
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Project Duration (months):
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14
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Current Reporting Period (month):
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6
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BAC:
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$387,000
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Cumulative PV:
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$68,345
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Cumulative AC:
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$78,379
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% of the project completed through the reporting period:
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19%
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Estimate to Complete:
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$294,677
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Based on your calculations in Question 1 above, an inexperienced and arrogant project analyst from the project management office has computed an additional metric: Cost Schedule Index, which equals SPI * CPI. He wants you to report this metric to the customer, instead of SPI and CPI separately. What should you do and why?
The program manager doubts your numbers. In particular, he does not believe your EAC number and requests that you calculate two independent EACs. In particular, he wants the following IEACs calculated from rows two and four in Table 23-5 in Snyder, (2013).
Compute IEAC1= ((BAC- EV)/CPI) + AC
Compute IEAC2= ((BAC- EV)/(SPI*CPI)) + AC
Interpret IEAC1
Interpret IEAC2
Based on items 1-4 above, what do you think the program manager will request from you regarding the bottom-up EAC?
You are having a hallway conversation with the same project analyst from Question 3, who is realizing that he may not know as much about earned value management as he thought when he joined the company.
Still, he is convinced that the following statements below are correct. How would you respond to him based on each statement (i.e., formulate a specific response and supporting rationale for each statement below)?
EAC becomes Cumulative AC at project completion.
Cumulative EV can be greater than BAC at project completion.
EAC can be smaller than BAC at project completion.
ETC can be greater than 0 at project completion.
Ensure that your last name is in the file name and submit your completed Excel file by the end of this week.