5-1 Earned Value Calculation

Activity A:

Planned Value (PV) = $150,000 * 35% = $52,500

Earned Value (EV) = $150,000 * 35% = $52,500

Actual Cost (AC) = $45,000

Activity B:

Planned Value (PV) = $100,000 * 45% = $45,000

Earned Value (EV) = $100,000 * 45% = $45,000

Actual Cost (AC) = $50,000

Activity C:

Planned Value (PV) = $110,000

Earned Value (EV) = $110,000

Actual Cost (AC) = $100,000

Activity D:

Planned Value (PV) = $450,000 * 55% = $247,500

Earned Value (EV) = $450,000 * 55% = $247,500

Actual Cost (AC) = $200,000

Total Project:

PV = $52,500 + $45,000 + $110,000 + $247,500 = $455,000

EV = $52,500 + $45,000 + $110,000 + $247,500 = $455,000

AC = $45,000 + $50,000 + $100,000 + $200,000 = $395,000

SV (Schedule Variance) = EV - PV = $455,000 - $455,000 = $0

CV (Cost Variance) = EV - AC = $455,000 - $395,000 = $60,000

SPI (Schedule Performance Index) = EV / PV = $455,000 / $455,000 = 1

CPI (Cost Performance Index) = EV / AC = $455,000 / $395,000 1.153

3. Assessment of Project Performance:

The Schedule Variance (SV) stands at $0, signifying that the project is adhering to the planned schedule. The Cost Variance (CV) amounts to $60,000, implying that the project is spending less than budgeted. With an SPI of 1, the project's advancement aligns with the intended schedule. The CPI, which is around 1.153, reflects effective cost control. Overall, the project's performance is favorable, marked by positive outcomes in both cost and schedule aspects. This indicates a successful progression of the project and justifies a celebration.

5-2 Earned Value Calculation

Activity A:

Planned Value (PV) = $250,000 * 50% = $125,000

Earned Value (EV) = $250,000 * 50% = $125,000

Actual Cost (AC) = $165,000

Activity B:

Planned Value (PV) = $190,000 * 65% = $123,500

Earned Value (EV) = $190,000 * 65% = $123,500

Actual Cost (AC) = $150,000

Activity C:

Planned Value (PV) = $250,000

Earned Value (EV) = $250,000

Actual Cost (AC) = $200,000

Activity D:

Planned Value (PV) = $500,000 * 55% = $275,000

Earned Value (EV) = $500,000 * 55% = $275,000

Actual Cost (AC) = $350,000

Total Project:

PV = $125,000 + $123,500 + $250,000 + $275,000 = $773,500

EV = $125,000 + $123,500 + $250,000 + $275,000 = $773,500

AC = $165,000 + $150,000 + $200,000 + $350,000 = $865,000

Activity A:

CV = EV - AC = $125,000 - $165,000 = -$40,000

SV = EV - PV = $125,000 - $125,000 = $0

CPI = EV / AC = $125,000 / $165,000 0.758

SPI = EV / PV = $125,000 / $125,000 = 1

Activity B:

CV = EV - AC = $123,500 - $150,000 = -$26,500

SV = EV - PV = $123,500 - $123,500 = $0

CPI = EV / AC = $123,500 / $150,000 0.823

SPI = EV / PV = $123,500 / $123,500 = 1

Activity C:

CV = EV - AC = $250,000 - $200,000 = $50,000

SV = EV - PV = $250,000 - $250,000 = $0

CPI = EV / AC = $250,000 / $200,000 = 1.25

SPI = EV / PV = $250,000 / $250,000 = 1

Activity D:

CV = EV - AC = $275,000 - $350,000 = -$75,000

SV = EV - PV = $275,000 - $275,000 = $0

CPI = EV / AC = $275,000 / $350,000 0.786

SPI = EV / PV = $275,000 / $275,000 = 1

Total Project:

CV = -$40,000 + -$26,500 + $50,000 + -$75,000 = -$91,500

SV = $0 + $0 + $0 + $0 = $0

CPI = ($125,000 + $123,500 + $250,000 + $275,000) / ($165,000 + $150,000 + $200,000 + $350,000) 0.895

SPI = ($125,000 + $123,500 + $250,000 + $275,000) / $773,500 0.896

2. Assessment of Project:

The computed measurements reveal varied outcomes for each activity, displaying both positive and negative CV and SV values. The CPI values tend to be less than 1, implying potential cost inefficiencies, while the SPI values are almost at 1, indicating a close alignment between project progress and the intended schedule. On the whole, the project's performance seems to fall short of the ideal, potentially involving cost overruns and deviations from the planned schedule. It may be necessary to conduct further analysis and take corrective measures to address these concerns and enhance project performance.

Answer the following questions to create a powerpoint are as follows:

• Create a PowerPoint presentation that is set up for automatic transitions of slides with voice narration or create a video presentation that offers a narration with your voice.
• Review the calculations for each problem (5-1 through 5-2) from last week, and explain to management what these calculations mean.
• Discuss your conclusion for each problem and make an appropriate recommendation to management based on your calculations of the data.
• Explain the calculated results of the PV, EV, AC, SV, SV, SPI, and CPI for the first problem, and then present a conclusion based on this analysis and provide your recommendations to management.
• Explain the calculated results of the CV, SV, CPI, and SPI for the second problem, and present a conclusion based on this assessment and provide your recommendations to management.

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