cost management - project schedule

Submitted by vijayavadrevu on Sat, 03/30/2013 - 12:25

Your boss is worried about the project schedule. There is a critical deliverable due to the federal government in 2 weeks. If you miss the deliverable, you could lose the entire contract. To help reduce the boss's stress you show him teh earned value calculations you just completed. They show your cost performance index CPI is 1.25, your actual cost AC is $400 million and your planned value PV is $490 million. Should your boss be comfortable?

A)Yes, your SV is $10 milliion

B)No your CPI is too high

C)He needs more data

D)Yes, your SPI is 1.05

I answered it as (A) but the correct answer is given as (C). What is the additional data required? Can someone explain?

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Renji2013

Sat, 03/30/2013 - 16:49

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My thoughts

Well, the boss is looking to see if you can complete it in next 2 weeks. For that the required data is atleast SPI, schedule performance index + Scheduled End date. If the originally planned schedule is to complete the project in 2 weeks and the SPI is 1 or above that value, then the project will some how go though provided the path ahead is clear. Also SPI is coming as 1.02 here not 1.05. If SPI varies in beetwen , there is not gaurantee it can be completed on time. All the other 3 choices doesnt match any way, so I wil lgo for C.

regards

Renji

vijayavadrevu

Sat, 03/30/2013 - 17:02

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