Chapter 7, Exercise #1
1. Given the following information for a one-year project (see p. 285 for complete text of this exercise): PV= $23,000 EV=$20,000 AC= $25,000 BAC=$120,000
* What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? Cost Variance: Earned Value (EV) – Actual Cost (AC)
$20,000 - $25,000 = ($5,000)
Schedule Variance: EV – Planned Value (PV)
$20,000 - $23,000 – ($3000)
Cost Performance Index: EV / AC
$20,000 / $25,000 = 0.8
Schedule Performance Index: EV / PV
$20,000 / $23,000 = 0.869
* How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? The project is not going to make the due date scheduled and will take a little longer making the projects budget increase. So they are behind schedule and over budget. * Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? BAC / CPI
$120,000 / 0.8 = $150,000 The project is performing worse than planned. * Use the schedule performance index (SPI) to estimate how long it will take to finish this project. The project is presently 13% overdue. SPI=100%– 87%. It is going to take 13% longer to complete the project.
* Sketch the earned value chart based for this project, using Figure 7-5 as a guide.
Chapter 8, Exercise #1 (p. 330)
1. Assume your organization wants to hire new instructors for your project management course. Develop a list of quality standards that you could use in making the hiring decision.
For new instructors to be successful in project management one must first have experience outside the classroom and also be willing to teach others the subject at hand to the best of their knowledge. One must be able to teach others what they have learned and everything in the book. Experience is a must in order to know right from wrong. Other...