Exercise: Performance Measurement

A$-12$ Program

Based on the information provided, assess and document your opinion about

the realism of the EAC for the A$-12$ program.

To help you with the assessment, answer the following questions:

What percent complete is the project? $[$EV$/$BAC$][$Answer: $]$

What percent was scheduled to be complete? $[$PV$/$BAC$][$Answer: $]$

What percent has been spent of the EAC? $[$AC$/$EAC$][$Answer: $]$

Compare CPI and TCPI for realism:

CPI shows the cost efficiency to date $[$Answer: $]$

TCPI shows the required cost efficiency to meet the EAC $[$Answer: $]$

If the CPI and TCPI are more than $10\%$ different, the EAC is very likely to be unrealistic $[($TCPI$-$CPI$)/$CPI$]$

$x100[$Answer: $]$

Compare the overrun to date $($CV$)$ with the overrun at the end of the project $($VAC$)$:

The CV shows the cost variance to date $[$CV$=$EV $-$ AC$][$Answer: $]$

The VAC shows the projected cost variance at the end of the project, based on the EAC $[$VAC $=$ BAC $-$

EAC$][$Answer: $]$

If the overrun to date $($CV$)$ is worse than the projected final overrun $($VAC$),$ then a recovery is NOT

expected; recoveries of more than $10\%$ are rare, especially if the project is more than $20\%$ complete

$[$VAC$-$CV$)/$CV$]$ X $100$ and EV$/$BAC X $100[$Answer: $]$

Calculate two statistical EACs, based on trends to date:

Low End Statistical EAC $(1)=AC+[\frac{\text{B}\text{A}\text{C}-EV}{C}\frac{?}{PI}][$Answer: $]$

High End Statistical EAC $(2)$ SPI$)][$Answer: $]$

If you were a consultant for the government, what action would you

recommend for the A$-12$ Program? $[$Answer: $]$