Question

Problem 5-5 Your project to obtain charitable donations is now 41 days into a planned 51-day project. The project is divided into 3 activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 34 days of the project and to bring in $25,700. Even though we are 41 days into the project, we still see that we have only 90% of this activity complete. The second activity relates to company donations and is scheduled to run for 41 days starting on day 7 and extending through day 48. We estimate that even though we should have (34/41) 83% of this activity complete, it is actually only 54% complete. This part of the project was scheduled to bring in $150,700 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $51,400. So far $178,000 has actually been brought in on the project. Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your dollar amounts to the nearest whole number. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost variance Cost performance index

Answer 1

Solution:

Activity	Budgeted Revenue	Planned completion	Actual completion	Planned Value = (Budgeted Revenue * Planned completion)	Earned Value = (Budgeted Revenue * Actual Completion)
1	25,700	100%	90%	25,700	23,130
2	150,700	83%	54%	125,081	81,378
3	51,400	0%	0%	0	0
				Total Planned Value = $150,781	Total Earned Value = $104,508
		Schedule Variance = Total Earned Value - Total Planned Value	104,508 -150,781 = -$46,273		Actual cost of work =178,000
		Schedule Performance Index = Total Earned Value/Total Planned value	104,508/150,781 = 0.6931112
		Cost variance = Total Earned Value - Actual Cost of work	104,508 - 178,000 = -$73,492
		Cost performance index = Total Earned Value / Actual cost of work	104,581/178,000 = 0.5871236