Question

You are a software project manager for a software firm budgeted at 650,000$. As of today, the project should be 42% complete, but after reviewing the status of the scheduled tasks involved in the project, it is clear that only 30% of the work has been completed. The team has spent 425,000$ thus far. What is the current status of the project?

1)calculate PV, AC, EV, SPI, CPI, CV, CV%, SV, SV%, EAC, ETC.
2)write a short description of what the outcome means for the project.

Answer 1

1
Particulars		Working	Answer	Remark
	Planned % Complete	42%
	BAC/ Budget at Completion	6,50,000
PV	Planned Value = (Planned % Complete) X (BAC)		2,73,000	Planned Value (PV) is the authorized budget assigned to work to be accomplished for an activity or WBS component
AC	Actual Cost		4,25,000	Actual Cost is the amount of money that you have spent so far.
	% of completed work	30%
	BAC (Budget at Completion).	6,50,000
EV	Earned Value (EV)		195000	Earned Value is the work actually completed to date. It shows you the value that the project has produced if it were terminated today.
	Earned Value	1,95,000
	Planned Value	2,73,000
SPI	SPI = EV / PV		0.71	The schedule performance index (SPI) is a measure of how close the project is to being completed compared to the schedule.
CPI	Earned Value	1,95,000
	Actual Cost	4,25,000	0.46	The Cost Performance Index helps you to analyze the cost efficiency of the project. It measures the value of the work completed compared to the actual cost spent
	Earned Value	1,95,000
	Actual Cost	4,25,000
CV	Cost Variance = Earned Value – Actual Cost		-2,30,000	the project’s Cost Variance is –2,30,000 $, and you are over budget since it is negative.
CV%	Earned Value	195000
	Actual Cost	425000
	Cost Variance in %= Earned Value / Actual Cost		45.88%
	Earned Value	1,95,000
	Planned Value	2,73,000
SV	Schedule Variance = Earned Value – Planned Value		-78,000	The project’s Schedule Variance is -78,000 $. You are behind schedule since it is negative.
	Earned Value	195000
	Planned Value	273000
SV%	Schedule Variance in % = Earned Value /Planned Value		71.43%
EAC	Estimate at completion (Based on Various Method)			EAC is the expected total cost of completing all work for the project
	Future performance will be based on the budgeted cost
	EAC = AC + (BAC – EV)		880000
	AC	425000
	BAC	6,50,000
	EV	-1,95,000
	Future cost performance will be based on past cost performance
	EAC = AC + [(BAC – EV) / CPI]		2266666.667
	AC	425000
	BAC	650000
	EV	-195000
	CPI	0.46
	Future cost performance will be influenced by past schedule performance
	EAC = AC + [(BAC -EV) / (CPI x SPI)]		3003333.333
	AC	425000
	BAC	650000
	EV	-195000
	CPI	0.46
	SPI	0.71
	A new estimate is produced
	EAC = AC + ETC		701932.77
	AC	425000
	ETC	276932.77
ETC	Estimate to complete		276932.77	ETC is the expected cost to finish the remaining work of the project
	ETC = (BAC – EV) / Performance factor
	BAC	650000
	EV	-195000
	Performance Factor(CPI*SPI)	0.33
2	outcome means for the project.
	Company’s forcats not aligned with actual i.e project should be completed 42% but actually its just 30% and company SV and CV also negative so its not give more focus on resource scheduling and ETC also $ 276932.77