PM Study critical path question

 

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 ? 

 

 

 

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. 
cnppmp's picture

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CN Patil

 Even with CPI and SPI,

CPI=EV/AC = 0.9615 and SPI = EV/PV = 1.136

Hence it is ahead of schedule and over budget

exactly correct