Question

PLEASE SHOW ALL CALCULATIONS. PLEASE DRAW A NETWORK DIAGRAM AS WELL.

The following project is at the end of its 6^th 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 EAC for the project by at least two different methods.

Activity	Predecessor	Duration (wks)	Budget      ($)	Actual Cost ($)	%Complete
a	-	2	600	400	100
b	-	3	150	180	100
c	a	2	250	300	100
d	a	5	500	400	20
e	b, c	4	400	200	20

1. CV =
2. SV =
3. CPI =
4. SPI=
5. CR=
6. EAC=

Answer 1

Critical path = A-C-E = 8 weeks. 75% complete schedule at 6 weeks

Actual Cost (AC)$ 1,480.00

Earned Value (EV)$ 1,180.00

Planned Value (PV)$ 1,600.00

Budget at Completion (BAC)$ 1,900.00

a.Cost Variance (CV) = EV – AC = $1,180 – 1,480 = -$300

b.Schedule Variance (SV) = EV – PV = $1,180 - $1,600 = -$420

c.SPI = EV / PV = $1,180 / $1,600 = 0.738

d.CPI = EV / AC = $1,180 / $1,480 = 0.8

e.Critical Ratio (CR) = CPI * SPI = 0.8 * 0.738 = 0.588

f.EAC= AC + (BAC – EV)/(CPI*SPI) = $1,480 + {($1,900 - $1,180)/(0.738*0.8)} = $2,704.48

EAC = BAC / CPI = $1,900 / .8 = $2,383.05

EAC = AC + [(BAC-EV)/CPI] = $1,480 + [($1,900-$1,180)/0.8)] = $2,383.05

EAC = AC + (BAC-EV) = $1,480 + ($1,900- 1180) = $2200