Question: I have been able to work threw the first part of this question please help on part 2/3 in bold You are a project manager

I have been able to work threw the first part of this question please help on part 2/3 in bold

You are a project manager on a project that uses earned value management. The project has the following budget and status:

Project Duration (months):14

Current Reporting Period (month):6

BAC:$387,000

Cumulative PV:$68,345

Cumulative AC:$78,379

% of the project completed through the reporting period:19%

Estimate to Complete:$294,677

Based on this information, determine the following:

Cumulative EV 19%x387,000=73,530

Schedule Variance (SV) ev-pv 73530-68,645=4,885

Schedule Performance Index (SPI) 73,530-68,345=5185

Cost Variance (CV) 73530-78379=-4,849

Cost Performance Index (CPI) 73530/78,379=.944

EAC (bottom-up) 78,379+294,677=373,056

VAC (bottom-up) 38700-3773056=13944

TCPI

Based on your calculations in Question 1 above, respond to the following:

What is the status of project accomplishment performance through the current reporting period? Why?

The SV of the project is positive and SPI is more than 1 so the project is ahead of schedule.

What is the status of project cost performance through the current reporting period? Why?

The CV is negative and the CPI is less than 1 so the project is over budget.

Is the project projected to complete over- or underbudget? Why?

It is over-budget

Interpret the TCPI metric.

The TPCI is 1.016 so the project needs to spend extra .016 extra of budget to achieve EAC.

Based on your calculations in Question 1 above, an inexperienced and arrogant project analyst from the project management office has computed an additional metric: Cost Schedule Index, which equals SPI * CPI. He wants you to report this metric to the customer, instead of SPI and CPI separately. What should you do and why?

The Program Manager doubts your numbers. In particular, he does not believe your EAC number and requests that you calculate the EAC NOT assuming future performance will behave like past performance.

Compute EAC when cost performance is negative and schedule dates must be met: EAC = AC + [(BAC EV) / (CPI SPI)]

Compute EAC using actual costs to date and assuming ETC uses budgeted rate: EAC = AC + (BAC EV)

Interpret the results of the EAC in a.

Interpret the results of the EAC in b.

Based on items a-d above, what do you think the Program Manager will request from you regarding the bottom-up EAC?

You are having a hallway conversation with the same project analyst from Question 3 who is realizing that he may not know as much about earned value management as he thought when he joined the company. Still, he is convinced that the following statements below are correct. How would you respond to him based on each statement (i.e., formulate a specific response and supporting rationale for each statement below)?

EAC becomes Cumulative AC at project completion.

Cumulative EV can be greater than BAC at project completion.

EAC can be smaller than BAC at project completion.

ETC can be greater than 0 at project completion.

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