QUESTION 1 (20 Marks) REQUIRED Study the extract given below and answer the following questions: 1.1Critically discuss earned value management as a tool available to project managers.(4 marks)

1.2Calculate the following in respect of the project of Ashton Limited: 1.2.1Cost variance(3 marks) 1.2.2Cost variance %(3 marks) 1.2.3Schedule variance(3 marks) 1.2.4Schedule variance %.(3 marks)

1.3Suggest a suitable plan of action if a project falls behind schedule.(4 marks)

INFORMATION Earned value management Cost control is an important consideration when embarking on a project. Moreover, there is a close link between the cost and schedule and it is therefore important that they be monitored and controlled at the same time. Changes to one affect the other. It is for this reason that the project manager at Ashton Limited keeps a regular track of the actual schedule progress to ensure that no more money is spent than is authorised. If a project has fallen behind schedule the project manager must decide on a suitable plan of action to follow. The following information and progress report is available for one of the projects of Ashton Limited: The budget that has been authorised for the scheduled work to be completed thus far is R100 000. The value of work actually completed expressed in terms of the approved budget is R120 000. The actual cost incurred to accomplish the work performed thus far is R110 000.