PM Study critical path question

Submitted by khaledfawzy on Sat, 05/25/2013 - 11:59

Question No : 129
	What is the status of the project?

	Choice 1	Behind schedule, under budget

	Choice 2	Ahead of schedule, under budget

	Choice 3	Ahead of schedule, over budget

	Choice 4	Behind schedule, over budget

Earned value (EV)
= The sum of the approved cost estimates for activities completed during a given period
= Estimated cost of work that is completed after day 11
= $ 5,000 + $ 5,000 + $5,000*.50 = $ 12,500 (because Task A, Task B are complete, Task C is 50% complete)

Present value(PV)
= Present work to be completed after day 11
= $ 5,000 + $ 5,000 + $ 5,000 * (1/5) (because at end of day 11, according to our plan, Task A, Task B should be complete; Task C only one day out of 5 days should be complete, i.e., 20% complete ($ 1,000 of work should be done)
= $ 11,000.

Actual cost (AC)
= Actual Cost of work completed
= $ 13,000.

Schedule variance (SV)
= EV - PV = $ 12,500 - $ 11,000 = $ 1,500
Since SV is positive, we are ahead of schedule.

Cost variance (CV)
= EV - AC = $ 12,500 - $ 13,000 = - $ 500
Since CV is negative, we are over budget.

would you please help me to with this question

i just want to know why he used CV & SV instead of CPI & SPI

when we can use variance and when we can use index ?

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sanskrit

Sat, 05/25/2013 - 12:14

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In this question it does not matter

You can use either CV & SV OR CPI & SPI, You will get the same result

If CV is negative, then CPI will be LESS than 1, So we will be over budget
If SV is positive, then SPI will be GREATER than 1, So we will be ahead of schedule.