Objective: To gain experience calculating earned value, cost variance, schedule variance, and cost performance index. Exercise: Given the following Project Baseline Plan, complete the form to develop a status report for the project at the end of period 4 and the end of period 8 . What is the status of the project at the end of period 8 ? Proiect Baseline Plan Part 1: Complete the following tables Step \#2: Calculate the Performance Indexes Summary: CPI : Cost Performance Index; CPI = EV / AC (ratio: for every $ spent, this is the amount of $ value earned) Period EV AC PV SV CV CPI 2 4 6 8 4 6 8 Step \#3: Calculate Forecasted Cost at the end of Period 8: Assumption \#1. FCAC=TPV/CPI= Assumption \#2. FCAC=CAC+(TPVCEV)= Terms and Formulas: FCAC: Forecast Cost At Completion AC: Actual Cost CAC: Cumulative Actual Cost TPV: Total Planned Value EV: Earned Value CEV: Cumulative Earned Value CPV: Cumulative Planned Value CPI: Cost Performance Index ES: Early Start LF: Late Finish SL: Slack PV: Planned Value (Budgeted Cost) Formula for Cost Variance: CV=EVAC Project: Build a digital camera prototype Project: Build a digital surgical camera prototype os Project: Build a digital surgical camera prototype \begin{tabular}{|l|} \hline liped \\ \hline Zrezad \\ bnetim \\ aninn \\ \hline Mlas \\ \hline \end{tabular} Wand Project: Build a digital surgical camera prototype Status Report: Phase I (Month HI) Project: Build a digital surgical camera prototype \begin{tabular}{|lcrrrrr|} \hline Status Report: Ending Period 1 & & & & & \\ Task & \%Complete & EV & AC & PV & CV & sV \\ A & 50% & 10 & 10 & 10 & 0 & 0 \\ Cumulative Totals & & 10 & 10 & 10 & 0 & 0 \\ \hline \end{tabular} Status Report: Phase 2 (month tr2) Project: Build a digital surgical camera prototype cost Variance: CV = EV - AC Schedule Variance: 5V = EV - FV Status Report: Phase 4 Cost Variance; CV=EVMC Schedule Variance: 5V= EV PV Status Report: Phase 5, 6 Cost Variance: CV=EVAC schedule Variance: 5V=EVPV mars 13 Status Report: Another vi Cost performance index (CPI) EV/AC=160/230=0.69 Forecast what the total costs will be at the completion of the project or work package Two different assumptions Assumption \#1: FCAC=TPV/CPI=320/0.69=463.77($463,000) Assumption \#2: FCAC=CAC+(TPVCEV)=230+(320160)=$390 CONTROLLING COSTS Analyze cost performance on a regular basis Determine which work packages require corrective action Decide what specific corrective action Revise the project plan Evaluate negative cost variance Take corrective actions Near term activities Activities with large cost estimate Reduce costs of activities Evaluate the trade-off of cost and scope