Question

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a given project. Execise#2: 2. On day 51 a project has an earned value of $600, an actual cost of $650, and a planned cost of $560. Compute the SV, CV, and CPI for the project. What is your assessment of the project on day 51? Complete exercise 2 Given the data provided, in an excel spreadsheet, PowerPoint, or other appropriate method of delivery, determine the following: 1. Schedule Variance (SV) 2. Cost Variance (CV) 3. Schedule Performance Index (SPI) 4. Cost Performance Index (CPI) In 250-300 words, answer the questions provided with the exercise. Reflect on the assessment of this project assessment. Should the project continue to improve?

Answer 1

since SV value is positive. Positive number indicates work that was not suppose to be done by this time has been accomplished.

CV with negative value indicates over budget.

CPI value with less than 1 indicates a cost overrun. A value greater than 1 indicates cost savings. CPI = .92 means we are only earning 92 percents of planned work for each dollar spent.

SPI value less than 1 indicates that work on the project is behind schedule. A value greater than 1 indicates work on the ahead of schedule. SPI = 1.07 means $1.07 worth of work has been accomplished for each $1 worth of scheduled work.

Efforts can be made to reduce CV as it is over budget.