Question

NO HANDWRITTEN ANSWERS PLEASE

Inspired by his trip to Greece, the gentleman farmer decided he needed a Mykonos-style windmill pumping a pond for his sheep and orchard. His earned value table for the project appears below. At the end of June, what were the estimated time to completion and the estimated cumulative cost to completion?

Activity	Jan	Feb	Mar	Apr	May	Jun	Jul	Plan	% Complete	Earned Value
Grading	500	150						650	100%	650
Footings		200	150					350	100%	350
Foundation			800	300				1,100	80%	880
Masonry				300	300	200		800	70%	560
Interior					700	2,000		2,700	50%	1,350
Pump Install							3,000	3,000	40%	1,200
Painting						350	400	750	25%	188
Monthly Plan	500	350	950	600	1,000	2,550	3,400	9,350		5,178
Cumulative	500	850	1,800	2,400	3,400	5,950	9,350
Monthly Actual	600	400	900	800	800	2,800	0
Cumulative Actual	600	1,000	1,900	2,700	3,500	6,300

Answer 1

Cost Performance Index (CPI) = EV / AC = 5,178 / 6,300 = 0.8219 (overbidget)
Schedule Performance Index (SPI) = EV / PV = 5,178 / 5,950 = 0.8703 (delay)

Assuming that the same sort of delay will happen in rest of the project, the estimated time to complete the remaining project is:

= 1 month / SPI

= 1 / 0.873

= 1.15 months

So, total time for the project = 7.15 months.

The estimated cumulative cost to completion = Estimate At Completion (EAC)

= AC + (BAC - EV) / (SPI * CPI)

= 6300 + (9350 - 5178) / (0.8219 * 0.8703)

= $12,133