Question

The Project below is currently at the end of Week 6. Use the table below to find the PV, EV, CPI, SPI, and CSI. Use the % Complete column where applicable for these calculations. What conclusions can you make on the project given your calculated CPI, SPI, and CSI values? Activity Predecessors Duration (weeks) Budget, $ $350 $550 $250 $400 $450 $600 Actual Cost, $ $400 $550 $200 $300 $150 А % Complete 100% 100% 100% 90% 30% 0% B,C D, E F $o

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Answer 1

Tavola one 1 3 4 5 2 wes į 7 8 9 10 o: feb completed In - at the end of 6 week 2 A = complete > B = 1 > C → = 1 week left; 3/4 = 75% complete » E = complete 7 fe not yet started; 0). a T A

PV stands for planned value in project management context. This means the amount of money planned to be spent at a particular stage of project. At end of week six as per above diagram following will be the status of different activities:

A: complete, planned cost : 350

B: complete, planned cost : 550

C: complete, planned cost : 250

D: 3 week of job should have been done as per plan, hence planned cost = (3/4)*400 = 300

E: complete, planned cost : 450

F : yet to be started, planned cost : 0

Hence total planned value = PV = 350+550+250+300+450= 1900

EV stands for earned value. In project management it means the budget cost of work finished at a particular stage of project.

Hence EV = 350*1+550*1+250*1+400*0.9+450*0.3+600*0 = 1645

SPI stands for schedule performance index and is the ratio of EV to PV. Hence it shows how efficiently the project work is progressing in comparison to the planned schedule.

SPI = EV/PV = 1645/1900 = 0.865

CPI stands for cost performance index and is the ratio of EV to AC. Here AC means actual cost. Hence it is a measure of the cost efficiency of budgeted resources.

Actual cost = AC = 400+550+200+300+150= 1600

CPI = EV/AC = 1645/1600 = 1.028

CSI stands for cost schedule index. It gives an idea of how project is progressing both in terms of time and cost.

Formula for CSI is = SPI*CPI = 1.166

SPI less than 1 signifies project is behind the schedule.

CPI greater than 1 signifies project is under the budget estimates.

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