# Can someone explain the Exercise (The Fence#1), page 244 on Rita's 6th edition PMP book?

Folks,

Can someone explain the Exercise (The Fence#1), page 244 on Rita's 6th edition PMP book? It is in the Cost management Chapter. I really don't understand how to analyse the info given in the table.

Any explanations will be appreciated.

Here are snapshots of the exersice:

http://img104.herosh.com/2010/07/16/914701512.jpg

http://img101.herosh.com/2010/07/16/409446397.jpg

http://img104.herosh.com/2010/07/16/979309575.jpg

### You are limiting yourself to

You are limiting yourself to help from people who have Rita's book/ access to it.   You get  more help if you re-state the problem in your own words

Chandra

### Hi Chandra,I really

Hi Chandra,

I really appreciate your noticed assistance and contribution in PMzilla. I have amended and added snapshots for the exercise.

Thanks,

### Solution to Fence Problem

@Dohaboy79:
Planned Value of the 4-sided Fence Project (PV) = 4 x \$1000 = \$4000.00
Earned Value at the end of Day 3 (EV) = Work accomplished in \$ till then = 2.5 sides completed = 2.5*\$1000= \$2500.00
Actual Cost (AC) = Cost incurred till then = \$1000(day1)+ \$1200(Day2)+\$600(Day3) = \$2800.00
Schedule Performance Index(SPI)=Work Accomplished/Planned Value= EV/PV=2500/4000 =0.625 (<1 means lagging behind schedule)
Cost Performance Index(CPI)=Work Accomplished/Costs Incurred=EV/AC=2500/2800=0.8928 (<1 means over the budget)
Cost Variance (CV)=Work Accomplished-Costs incurred=EV-AC=\$2500-\$2800=-\$300.00
Schedule Variance(SV)=Work Accomplished in 3 days-Planned Value for 3 days=EV-PV=\$2500-\$3000=-\$500.00
I hope you now got the idea of how to approach

Chandra

### thanks, im not 100%. The info

thanks, im not 100%.

The info table is what causing me a problem, I hope not to get these kind of tables. Otherwise the calculations are straight forward.

### Confuse

Can someone please assist me on understanding this Excercise in Chapter 7. I hae looked though this book for the formulas for PV, EV, AC and I can not find anything. Mayble I'm overlooking. Also how am I supposed to figure out  the fiugres that I supposed to plug in the formulas. Someone please help!!!!!!!

### Solution

Can you post here the problem? as i dont have with me the book.

PMP Practice EXam -- try it free >> http://www.pmptrend.com/pmp_exam_web_sampler.htm