Question

A project has just completed its 87th task of a total of 150 tasks in its project plan. The project has a total budget of $1,500,000. It was scheduled to have spent $500,000 at this point in the plan, but has actually spent only $400,000. The project manager estimates that the value of the work actually finished is $300,000. What are the spending and schedule variances for the project? What are the SPI and CPI? What is the EAC, assuming the remaining work will be completed as budgeted? Is this likely?

a. CV =

b. SV =

c. SPI =

d. CPI =

e. EAC =

Answer 1

Project cost control is nothing but the process by which the status of the project is monitored so that the project costs are updated and changes to the cost baseline are managed. Project cost control include: -

• Factors that result in changes to the authorized cost baseline are influenced.
• To ensure all change request are managed in timely manner.
• To ensure the cost expenditure is less than authorized funding.
• Monitoring cost performance
• Monitoring work performance
• Expected cost overrun are kept in acceptable limits.

Plannid vales $ 500,000 Eaxnud value $400,000 Actral cest 4.300, 000 a Cv EU-4C -400,000-80o,000 $100,000 Sinc cV is paxave, A under budget prafect b-SV EV-PV 500,000 400.000 4 100,00 Since SV s neahu, te work bchudulk ta be candluhd at this ti'ne es nat doe EV PV Cal SPI 400.000 500,000 Since ser is less han ,we are behimd schedule d CPI EV Ac 400,000 300,000 1.-3 Scree CPI is is s than than 1, be cest f conubltiog the coate plannd

esl AC t ETC EAC AAC-EU) ETC B C PI 400, 000 1500,000 846 154 46, 153 84