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16 Sep
2020

How much would the Cost Performance Index (CPI) have to change in order to complete the project within the original budget?

Category:ACADEMICIAN

SOLUTION AT Australian Expert Writers

Your project to deliver a product has five activities, each with a finish-to-start relationship. Project baseline information is presented below indicating the planned schedule and budgeted cost of each activity.
Baseline
Activity Name
Start
(Baseline)
Finish
(Baseline)
Cost
(Baseline)
Product
6/2/14
5/25/15
 
   Requirements
6/2/14
8/22/14
60,000.00
   Design
8/25/14
11/14/14
  90,000.00
   Build
11/17/14
3/20/15
120,000.00
   Test
3/23/15
5/22/15
50,000.00
   Release
5/25/15
5/25/15
0.00
You have to report project status as of January 30, 2015. The associated schedule and cost information is provided below. Assume: (1) a five-day work week; and (2) a constant resource loading (i.e., the rate of planned expenditures is constant over the duration of each activity).
Actual
Activity Name
% Complete
Start
(Actual)
Finish
(Actual)
Cost
(Actual)
Product
 
6/2/14
NA
 
   Requirements
100
6/2/14
8/30/14
68,000
   Design
100
8/31/14
11/20/14
85,000
   Build
70
11/21/14
NA
110,000
   Test

NA
NA

   Release

NA
NA

Show all work. Round dollar values to the nearest dollar. Calculate all other variables to three decimal places.
Earned Value Measures
Calculate earned value measures for each activity and for the cumulative project as of January 30, 2015; fill in the table below:
Activity
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)
Requirements
 
 
68,000
Design
 
 
85,000
Build
 
 
110,000
Test
 
 

Release
 
 

Entire Project
 
 
 
What is the Budget at Completion (BAC) for the project?
Earned Value Performance Measures
Calculate earned value performance parameters for each activity and for the cumulative project as of January 30, 2015; fill in the table below:
Activity
Schedule Variance (SV)
Schedule Performance Index (SPI)
Cost Variance (CV)
Cost Performance Index (CPI)
Requirements
 
 
 
 
Design
 
 
 
 
Build
 
 
 
 
Test
 
 
 
 
Release
 
 
 
 
Entire Project
 
 
 
 
Is the project ahead of schedule, on schedule, or behind schedule? Why?
Is the project over budget, under budget, or on budget? Why?
Earned Value Forecasts
Assuming the Cost Performance Index (CPI) remains constant for the remainder of the project:
What is the Estimate at Completion (EAC)?
What is the Estimate-to-Complete (ETC)?
How much more or less money (other than the current budgeted amount) will you need to finish the project?
How much would the Cost Performance Index (CPI) have to change in order to complete the project within the original budget?
 

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