QUESTION $2$

$2\mathrm{.}1$ As an industrial engineering employee of an organisation, discuss the

appropriateness of calculating cost performance index $($CPI$)$ and write down its

formula. $(3$ marks$)$

$2\mathrm{.}2$ If Planned value $($PV$)$ is simply R$13500.$ In order to calculate the planned value

$($PV$)$ we need to multiply the earned value $($EV$)$ by the percentage of the project that

is complete of $65\%.$ If the actual cost $($AC$)$ is R$9600,$ how would you determine the

following?

a$)$ The earned value $($EV$)(3$ marks$)$

b$)$ The cost variance of that month. $(3$ marks$)$

c$)$ Cost performance index $(3$ marks$)$