It is important for project management professionals to be able to review numbers and report on what they are saying. It is also important for you, as a project manager, to be able to use software that helps you maintain timelines and keep the project running on time and smoothly. This assignment will continue to help prepare you for your responsibilities.

Respond to the Following Problems

Reference pages 687-701 in the textbook: Data Analysis - Earned Value Analysis

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

Part 1:

Based on this information, determine the following:

1. Cumulative EV
2. Schedule Variance (SV)
3. Schedule Performance Index (SPI)
4. Cost Variance (CV)
5. Cost Performance Index (CPI)
6. EAC (bottom-up)
7. VAC (bottom-up)
8. TCPI

Based on your calculations above, respond to the following:

1. What is the status of project accomplishment performance through the current reporting period? Why?
2. What is the status of project cost performance through the current reporting period? Why?
3. Is the project projected to complete overbudget or underbudget? Why?
4. Interpret the TCPI metric.

Part 2:

Based on your calculations 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.

1. Compute EAC when cost performance is negative and schedule dates must be met: EAC = AC + [(BAC EV) / (CPI SPI)]
2. Compute EAC using actual costs to date and assuming ETC uses budgeted rate: EAC = AC + (BAC EV)
3. Interpret the results of the EAC in a.
4. Interpret the results of the EAC in b.

Based on these new calculations, what do you think the program manager will request from you regarding the bottom-up EAC?

Part 3:

You are having a hallway conversation with the same project analyst who is now 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)?

1. EAC becomes Cumulative AC at project completion.
2. Cumulative EV can be greater than BAC at project completion.
3. EAC can be smaller than BAC at project completion.
4. ETC can be greater than 0 at project completion.