# Pm 586 Week 4

Topics: Project management, Earned value management, Project manager Pages: 5 (686 words) Published: October 3, 2012
In this homework assignment, you will be working through two crashing problems and four earned value problems. All the information you need is included within this Homework packet. Make sure you answer all parts of the questions in their entirety.

Once you have worked through the problems, please post your responses to the Drop Box. Please refer to the course syllabus for the due date.

PROBLEM 1
Use the network diagram below and the additional information provided to answer the corresponding questions. [15 points]

a) The crash cost per day per activity. [10 points]

a) 800-300/7-3 =\$125 per day crashed
b) 350-250/3-1= \$50 per day crashed
c) 900-400/6-4= \$250 per day crashed
d) 500-200/3-2= \$300 per day crashed
e) 550-300/2-1= \$250 per day crashed

b) Which activities should be crashed to meet a project deadline of 10 days at minimum cost? What is the cost impact of crashing these activities? [3 points]

Path ABE= normal length 12 (critical path)
Path CDE= normal length 11

B for 1 day @additional cost \$50 and E for 1 day @additional cost of \$250. Total \$300.

c) Find the new budget (or cost of the project). [2 points]

Normal Cost 300+250+400+200+300 = \$1,450
Crashed Cost= \$1,450 + \$300 = \$1,750

PROBLEM 2
Use the network diagram below and the additional information provided to answer the corresponding questions. [13 points]
a) The crash cost per day per activity. [10 points]

a) 800-300/5-3 =\$250
b) 350-250/3-1= \$50
c) 900-400/6-4= \$250
d) 500-200/5-2= \$100

b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? What is the cost impact of crashing these activities? [3 points]

Path BCD= normal length 14 (critical path)
Path AD= normal length 10

B for 1 day @additional cost \$50

PROBLEM 3 [8 points]
Month| ACWP| BCWS| BCWP|
22| \$540| \$523| \$535|

a)Calculate the CV (Cost Variance). [2 points]

535-540= -5

b)Is the CV over or under budget? [2 points]

Over budget

c)Calculate the SV (Schedule Variance). [2 points]

535-523= 12

d)Is the SV ahead or behind schedule? [2 points]

Ahead

PROBLEM 4 [8 points]
Month| ACWP| BCWS| BCWP|
5| \$34| \$42| \$39|

a)Calculate the CPI (Cost Performance Index). [2 points]

39/34= 1.14

b)Is the project cost efficient or not efficient? [2 point]

Efficient

c)Calculate the SPI (Schedule Performance Index) [2 points]

39/42= .92

d)Is the schedule efficient or not efficient? [2 point]

Not Efficient

PROBLEM 5 [8 points]
Day| ACWP| BCWS| BCWP|
65| \$550| \$735| \$678|

a)Calculate the CV (Cost Variance). [2 points]

678-550= 128
b)Calculate the CPI (Cost Performance Index). [2 points]

678/550= 1.23

c)Calculate the SV (Schedule Variance). [2 points]

678-735= -57

d)Calculate the SPI (Schedule Performance Index) [2 points]

678/735= .92

PROBLEM 6 [8 points]
Day| ACWP| BCWS| BCWP|
65| \$750| \$735| \$678|

a)Calculate the CV (Cost Variance). [1 point]

678/750= -72

b)Calculate the CPI (Cost Performance Index). [1 point]

678/750= .90

c)Calculate the SV (Schedule Variance). [1 point]

678-735= .57

d)Calculate the SPI (Schedule Performance Index) [1 points]

678/735= .92

e)Explain the project performance in terms of efficiency, budget and schedule. What should the project manager do for the project? [4 points]

From the information given above the project is over budget and behind schedule. The SPI is also at an unfavorable and non-efficient note. It is not far from favorable conditions of meeting the required goal, the goal being to be above 1. It is crucial for the project manager to re-evaluate the current conditions of the project trends and begin corrective actions. One option may be to reevaluate the project short term goals. Another option could be to review the resources and see if they can be cut and/or obtain at a...

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