Problem 1. A project in its 26th week has an actual cost of $270,000. It was scheduled to have spent $261,000. For the work performed to date, the budgeted value is $272,000. What are the cost and schedule variances for the project? What are the SPI and CPI?
Problem 2. A project has just completed its 87th item in the project plan. It was scheduled to have spent $168,000 at this point in the plan, but has actually spent only $156,000. The project manager estimates that the value of the work actually finished is nearly $162,000. What are the spending and schedule variances for the project? What are the SPI and CPI?
Problem 3. The following project is at the end of its 6th week. Find the cost and schedule variances. Also find the CPI and SPI. Then find the critical ratio of the project using earned value calculations. Finally, calculate the ETC and EAC for the project.
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Activity
|
Predecessor
|
Duration (wks)
|
Budget ($)
|
Actual Cost ($)
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%Complete
|
|
a
|
-
|
2
|
300
|
400
|
100
|
|
b
|
-
|
3
|
200
|
180
|
100
|
|
c
|
A
|
2
|
250
|
300
|
100
|
|
d
|
A
|
5
|
600
|
400
|
20
|
|
e
|
b,c
|
4
|
400
|
200
|
20
|
Problem 4. Using the concepts from Session 11 reading (textbook and reserved readings), respond to following with a thorough explanation. Include any citations for references used to support your answer.
- What are some reasons that a failing project still might not be terminated?
- Who would make the best auditors: outside unbiased auditors or inside auditors who are more familiar with the organization, its procedures, and the project? Why?
- Under what circumstances would you change your answer to the previous question?
- Should the results of an evaluation or audit be shared with the project team?
- What are the major purposes served by an after-the-fact project evaluation?
Problem 5. Solve the following Case:
Stoneworth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stoneworth the contract, they stipulated a 1% penalty for each week Stoneworth was late on a completion date. Preston Flintrock, the project coordinator for Stoneworth, began to notice that the last two jobs were three weeks late, and the paving job that was due to be completed in the next two weeks was behind schedule. When Preston went in the field to investigate, he found the job to be understaffed, supplier delays, and a high work rejection/repaving needed. As a result, Preston decided to establish a better system of project control and present it to the boss.
Question 1: If you were Preston, what characteristics would you be looking for in a new control system? Explain
Question 2: Will a new control system be adequate for the problem? Explain